Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following can be classified as a "Flow" variable?

Options:

Loss by a firm

Bank deposits as on 1st oct 2017

Money supply

All of the above

Correct Answer:

Loss by a firm

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. Losses incurred by a firm is measured over a PERIOD of time thus considered as a "Flow variable", whereas, Bank deposits as on 1st oct 2017, Money supply etc are measured on a POINT of time thus, will be considered as a stock variable.