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Number 1 represents the reparation payments from Germany to France and Britain.
<h3>What is the flow of funds?</h3>The flow of funds implies the movement of money from one person or entity to another. In the case of the international flow of funds, this occurs as money moves from one country to another.
<h3>What does number 1 represent?</h3>Considering number 1 occurs from Germany to France and Britain, it likely represents reparation payments. This is because by the end of the First World War in 1918 Germany had to pay a lot of money to the countries affected by its war actions, which included France and Britain.
Therefore, money flowed from Germany to France and Britain as shown in the diagram.
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