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:
Answer & explanation
Correct answer: option 3
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.