A flow shows change during a period of time whereas a stock indicates the quantity of a variable at a point of time. Examples of stocks are: wealth, foreign debts, loan, inventories (not change in inventories), opening stock, money supply (amount of money), population, etc. []))), +((!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+!![]+[])+(!+[]+(!![])-[])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![])+(+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])-[])+(!+[]+(!![])+!![]))/+((!+[]+(!![])+!![]+!![]+!![]+[])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])-[])+(+!! The stock of money always refers to the stock of money held by the public. … Usually we can clearly distinguish inflows (adding to the stock) and outflows (subtracting from the stock). Answer:stock concept-wealth,cement production.flow concept- money sypply,change in nation's money supply . Money supply is one of the components of monetary policy that the Federal Reserve uses. If we want to compare the size of the money stock at one point in time Mst with that of a previous point in time (Mst-1), then we have to look at the flow (change) of money between these two points (change Ms) Supply of money refers to its stock at any point of time, it is because money is a stock variable as against a flow variable (real income). Your browser will redirect to your requested content shortly. Explanation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hus, wealth is a stock since it can be measured at a point of time, but income is a flow because it can be measured over a period of time. A change in money supply is a flow into or decrease into the money stock. Flows typically are measured over a certain interval of time – e.g., the number of births over a day or month. Click hereto get an answer to your question ️ State whether money supply is a stock variable or flow variable. Synonyms Depending on how the analysis is being made, some stock variables can be interpreted as flow variables and vice versa. This process is automatic. A flow (or "rate") changes a stock over time. Similarly, employment can be treated as a flow variable when it is viewed regarding work effort per staff hour. For instance, national income in 2018 can be interpreted as a stock variable – as a measure at a point in time – for the year of reference even though it is a flow variable. Changes in money supply can be either anticipated or unanticipated by the people. Please enable Cookies and reload the page. It is the change in the stock of money during a period (say a year), which is a flow.