Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

"Money supply" is considered as which of the following variable?

Options:

Stock variable

Flow variable

Fixed variable

Either 1 or 2 depending on the market condition

Correct Answer:

Stock variable

Explanation:

The correct answer is Option 1: Stock variable 

  • A stock variable is measured at a particular point of time.
  • Money supply refers to the total amount of money available in an economy at a given time.
  • It is not measured over a period (like income or output), hence it is not a flow variable.