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Refer to the above figure. If box A represents households, D the resource market, and C businesses, then flow (8) would represent ___ while flow (7) would represent ___.
Liquidated
The process of converting assets into cash or other forms of payment, often used in bankruptcy proceedings.
Interest Income
Earnings received from deposit accounts or investments such as bonds, loans where one lends money to someone else in exchange for a return of interest.
Currency Notes
Paper money issued by a country's central bank or government as legal tender for transactions.
Money Demand Curve
A graph showing the relationship between the quantity of money demanded and the interest rate.
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