BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stock
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Flow
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Variable
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All the above
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Detailed explanation-1: -Money supply is a stock concept similar to money demand. the total stock of money in circulation among the public at particular point of time is called money supply. The RBI publishes the money supply figures according to the stock of money circulating in public.
Detailed explanation-2: -Money supply is measured as per the stock of money that is in circulation among the public at a particular point of time. Hence, money supply is a ‘stock concept’.
Detailed explanation-3: -Assertion (A): Money supply is a stock concept. Reason (R): Money supply is measured over a period of time. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Detailed explanation-4: -The money supply is the total amount of money-cash, coins, and balances in bank accounts-in circulation. The money supply is commonly defined to be a group of safe assets that households and businesses can use to make payments or to hold as short-term investments.
Detailed explanation-5: -Supply is a flow concept because it is related with period of time.