In the circular flow diagram the net flow from households to the banking sector is:
A) savings net of borrowings and withdrawals from deposits
B) savings
C) savings minus borrowings
D) savings plus borrowings

Question

Quizplus · Accepted Answer

The net flow from households to the banking sector is savings net of borrowings and withdrawals from deposits, as it accounts for the total savings minus any borrowings or withdrawals made by households.

In the Circular Flow Diagram the Net Flow from Households