Question

Money flow involves exchange of _____________.

A

Goods and services

B

Gifts

C

Money

D

None of these

Medium

Solution

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Correct option is
C

Money

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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