The Circular Flow Model Shows the Flow of

question 93

Multiple Choice

The circular flow model shows the flow of

• A) expenditure and income throughout the economy.
• B) only money throughout the economy.
• C) only funds in stock and bond markets.
• D) only tax payments and government expenditures.
• E) goods market and factor markets as they move through the economy.

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Definitions:

JIT Inventory

Just-In-Time Inventory; a management strategy that aligns raw-material orders from suppliers directly with production schedules.

Disbursement of Funds

The act of paying out or distributing money, such as dividends to shareholders or expenditures to fulfill obligations or purchase assets.

Collateral Position

The assets that a borrower offers to a lender as security for the repayment of a loan, potentially forfeited in case of default.

Disbursement of Funds

The act of paying out money from a fund or account to cover expenses or investments.