Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Identify the items which will be classified as stock items.
    (A) Production
    (B) Money supply
    (C) Interest on deposits
    (D) Savings
    (E) Capital stock in a Country

Choose the correct answer from the options given below:

Options:

(A) and (E)   

(D) and (E) only  

(B) and (E) only   

(E) only

Correct Answer:

(B) and (E) only   

Explanation:

Stock variables are those variables which are measured at a particular POINT of time whereas, flow variables are those variables which are measured over a PERIOD of time. Money supply and capital stock in a country is measured at a point of time thus considered as stock variable. Whereas, other points which includes production, interest, savings will be considered as flow variables.