Which Statement Is TRUE Within the Circular Flow of Economic

question 1

Multiple Choice

Which statement is TRUE within the circular flow of economic activity?

• A) Households are sellers of products and sellers of production factors.
• B) Business firms are buyers and sellers of production factors.
• C) Households are sellers of products and buyers of production factors.
• D) Business firms are sellers of products and buyers of production factors.

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Definitions:

Forgery

The illegal creation or alteration of a document with the intent to deceive.

Drawer

In banking and finance, it refers to the individual or entity that writes or issues a check or draft instructing the drawee to pay the stated amount to a third party (the payee).

Endorsement

An official signing or inscribing of one's name on a document to validate it or transfer its ownership.

Direct Deposit

An electronic process, preauthorized by a customer, that allows funds to be deposited directly into the customer’s bank account.