The Circular Flow Model Shows the Flow Of

question 21

Multiple Choice

The circular flow model shows the flow of:

• A)products from households to businesses and the flow of resources from businesses to households.
• B)products from households to businesses and the flow of productive resources from households to businesses.
• C)products from businesses to households and the flow of money from households to businesses.
• D)products from businesses to households and the flow of productive resources from households to businesses.

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Definitions:

Bank Checking Account

A bank account that allows for numerous withdrawals and deposits, often used for daily transactions.

Pre-Printed Checks

Checks printed by the bank or another provider with the payer’s account information before the payer fills in the details of the payee, amount, and signature.

Cash Over And Short

An account that records discrepancies between the actual amount of cash received and the expected amount based on sales records.

Miscellaneous Expense

Expenses that do not neatly fit into specific categories, often minor in nature and not regularly recurring.