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      Question

      Which of the following is a stock variable?

      A Profit and Loss of a company Correct Answer Incorrect Answer
      B Foreign exchange reserve of India Correct Answer Incorrect Answer
      C Gross National Product Correct Answer Incorrect Answer
      D Total exports of India in a year Correct Answer Incorrect Answer
      E Planned budgetary expenditure in the Union Budget Correct Answer Incorrect Answer

      Solution

      Stock Variable -A stock is a quantity which is measurable at a particular point of time. Example - Capital is a stock variable. On a particular date (say, 31srtMarch, 2017), a country owns and stock of machines, buildings, roads, ports, foreign debts, loan, inventories, money supply, population, Balance Sheet etc. Flow Variables - A flow is a quantity which is measured with reference to a period of time. Example- Monthly salary, Change in the money supply, Profit and Loss of a company during a period, Export and Import during the year. 

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