Sherry Garcia Begins Her First Job After Graduating from College

question 205

Multiple Choice

Sherry Garcia 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 that she studied in Introduction to Business.Is Sherry 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:

Energy Content

The amount of energy present in a substance or system, which can be released or absorbed during a chemical or physical process.

Fuel

A substance consumed to produce energy through a chemical or nuclear reaction, commonly referring to materials used to power engines, such as gasoline or diesel.

Four-Cylinder Engine

An internal combustion engine with four cylinders arranged in a straight line, commonly found in small to medium-sized vehicles.

Power

The rate at which work is done or energy is transferred in a unit of time.