Share

Books Shortlist

# Distinguish Between Stocks and Flows. Give Two Examples of Each. - CBSE (Arts) Class 12 - Economics

ConceptBasic Concepts - Stocks and Flows

#### Question

Distinguish between stocks and flows. Give two examples of each.

#### Solution

 Basis of Difference Stock Variables Flow Variables Definition A stock variable is measured at a particular point of time. For example, bank balance as on October 01, 2010 is Rs 5000. A flow variable is measured over an interval of time. For example, interest earned on bank deposits for 1 year, i.e. from October 01, 2009 to September 30, 2010. Time Element They do not have an element of time attached to them They have an element of time attached to them such as 1 year, 6 months, 10 days, etc. Nature These are static in nature. These are dynamic in nature. Examples Capital, Bank deposits, Water in a tank. Capital formation, Interest on Capital, Water flowing in a stream.
Is there an error in this question or solution?

#### APPEARS IN

Solution Distinguish Between Stocks and Flows. Give Two Examples of Each. Concept: Basic Concepts - Stocks and Flows.
S