Gail Nelson Begins Her First Job After Graduating from College

question 75

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 that 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:

Criminal Law

A classification of law involving the rights and responsibilities an individual has with respect to the public as a whole.

Public Health

The science and art of preventing disease, prolonging life, and promoting health through organized efforts and informed choices of society, organizations, public and private, communities, and individuals.

Mens Rea

Latin for “guilty mind”; the mental state accompanying a wrongful behavior.

Common Law

A legal system based on custom, court rulings, and prior legal decisions, rather than by statutory laws.