Question

money flow involves exchange of______​

Answer 1

Answer:

money

Explanation:

Money flow involves exchange of money. Money flow refers to the flow of money in terms of receipts and payments across different sectors of the economy.

Example: Flow of factor payments by producer sector to the household sector or flow of money from household sector to producer sector on account of the purchase of goods and services for consumption are examples of money flows.

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Answer 2

The money flow involves exchange of money.

Explanation:

• As money flow refers to the flow of money in terms of the recipients and payments made across different sectors of the economy.  

• They include the flow of money as a factor of investments from the producer to the household sector. This involves the purchase of goods and services for the purpose of consumption.

• The circulating flows tell that money is exchanged in the economy and involves the factors of production such as land, labour and capital between individuals and company.

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