In the Circular Flow Diagram, Revenues and Goods and Services

question 83

Multiple Choice

In the circular flow diagram, revenues and goods and services flow:

• A)in opposite directions but are on the same side of the diagram.
• B)in the same direction but are on the same side of the diagram.
• C)in either direction as they are not correlated.
• D)in opposite directions and are on opposite sides of the diagram.

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Definitions:

Bondholder

An investor who owns bonds issued by a corporation or government, lending them money in exchange for periodic interest payments and the return of principal at maturity.

Issuer

An entity that issues or proposes to issue any security, or the entity on whose behalf the securities are issued.

Times-Interest-Earned Ratio

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.

Debt-to-Equity Ratio

A ratio demonstrating the mix of owner's equity and liabilities in financing the assets of a company.