Answer:
No sherry is not correct.
Explanation:
The circular flow of income is the movement of money and other resources in an economy.
Savings and investments are one of the factors that affects circular flow in an economy.
savings is the part of income which is not spent immediately but reserved for future purposes.
when savings are made in the bank, they are later returned into the economy by the bank. The bank turns the savings to investment, that will yield interest for the bank in form of loans.
Therefore Sherry's decision is incorrect because even though she has saved this money, the bank will in turn invest the money back into the circular flow.
