Gail Nelson Begins Her First Job After Graduating from College

question 183

Multiple Choice

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers which she studied in Introduction to Business.Is Gail correct?

• A) Yes, by putting this money into a savings account, only she has access to the funds and they are no longer available to the circular flow.
• B) No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
• C) Yes, only direct investments into companies, such as purchasing ownership shares of that company, will put her savings back into the circular flow.
• D) Yes, the circular flow focuses on businesses and government, and therefore Gail's savings have no impact on the circular flow.
• E) No, because she earned this money from a company and because she paid taxes on it, it is always considered part of the flow.

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Definitions:

Considered

Thoughtfully evaluated or contemplated before making a decision or judgment.

Misspelled Name

An error in the way a name is written, which could affect legal documents or official records.

Endorse

To sign the back of a check or other negotiable instrument, or to give support or approval to something or someone.

Holder

A person or entity that legally possesses a document, such as a promissory note or check, and has the right to enforce its terms.