Which of the following are correct statements related to stock and flow?

A. Flows are defined over on 1^st January
B. Flows are defined over a period of time
C. Flows and stocks are defined as a mutual understanding
D. Stocks are defined from January to December
E. Stocks are defined at a particular point of time

Choose the correct answer from the options given below:

B and E only

• Flows are economic concepts that represent changes over time, such as income, consumption, investment, and savings. They are measured per unit of time, such as per year, per quarter, or per month. Thus, Flows are defined over a period of time.

• Stocks are economic concepts that represent quantities at a particular point in time, such as wealth, population, capital, and national debt. They are measured as a total quantity at a specific point in time.

  Statements A, C, and D are incorrect:

  • A. Flows are defined over on 1st January. This statement is incorrect because flows can be defined over any period of time, not just from January 1st to December 31st.

  • C. Flows and stocks are defined as a mutual understanding. This statement is incorrect because flows and stocks are distinct economic concepts with different definitions.

  • D. Stocks are defined from January to December. This statement is incorrect because stocks can be defined at any point in time, not just within a particular calendar year.