What are the types of Circular Flow?

There are 2 types of circular flows (Both involving flow between two sectors only):
1. Real Flow:Also known as Physical Flow it refers to flow of services of factors of production from the household sector to the production sector and an equivalent flow from the production sector to the household sector in form of goods and services. It determines the magnitude of growth process of an economy.

2. Money Flow: It refers to the flow of money from firms to household sector in the form of factor payments and a corresponding flow back of money from households to producers in the form of consumption expenditure. Money flow is also known as nominal flow.