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Money supply is a ______ concept.
Question

Money supply is a ______ concept.

A.

Stock

B.

Measurable

C.

Non-measurable

D.

Flow

Correct option is A


The correct answer is (a) Stock.
· Money supply refers to the total amount of money available in an economy at a particular point in time. It includes various components like currency, demand deposits, and other liquid assets.
· It is considered a stock concept because:
· It represents the quantity of money at a specific point in time.
· Unlike a flow concept, which is measured over a period of time (e.g., income, expenditure), money supply is static and does not account for changes over time in its definition.

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