BANKING AFFAIRS

Detailed explanation-1: -Money supply is a stock variable because it is expressed at a particular point of time.

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: -A stock variable is a quantified variable that is measured at a particular point of time. Since, stock of capital, total money supply, and number of persons employed are a quantities measured at a particular point of time, these are stock variables.

Detailed explanation-4: -Detailed Solution. Money supply, like money demand, is a stock variable. Hence, statement 1 is incorrect. The total stock of money in circulation among the public at a particular point of time is called money supply.

Detailed explanation-5: -stock variable (plural stock variables) (economics, accounting) A variable whose value depends on an instant rather than on a period of time.