1. What are the flows of the Circular Models?

The circular flow model demonstrates how money moves from producers
to households and back again in an endless loop. The circular flow
model demonstrates how money moves through society. In an economy,
money flows from producers to workers as wages and flows back to
producers as payment for products. In short, an economy is an endless
circular flow of money.

2. Give the 5 main parts of the Circular Flow Models. Explain each briefly.

Household Sector: Households are the main sector for the consumption
of an economy. Those are us, the family units that makeup society. We
consume the goods and services produced by the economy. It is for our
benefit that the economy exists. It provides the labor used in production,
receiving payment of wages and salaries in return. 
Firms Sector: The business sector is where production takes place in
the economy. The individual agents making up the business sector are
called firms. These are the organizations within which entrepreneurship
brings together land, labor, and capital for the production of goods or
services.
Government Sector: It establishes the legal framework within which the
economy operates. Taxes are collected by the government from
households and firms.
Financial Sector: The financial sector is a section of the economy made
up of firms and institutions that provide financial services to commercial
and retail customers. This sector comprises a broad range of industries
including banks, investment companies, insurance companies, and real
estate firms.
Overseas/Foreign Sector: It is a part of circular flow models that
concerned with the transaction with overseas countries. It includes
imports and exports of goods and services as well as capital movements
in connection with investment and banking transactions.