Question

20. Which of the following is a flow variable?
(a) Consumption
(c) Quantity of money
(b) Wealth
(d) None of these​

Answer 1

Answer:

c) Quantity of money

Explanation:

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Answer 2

FLOW VARIABLE

CONSUMPTION OR PERSONAL CONSUMPTION is a flow variable.

KEY POINTERS OF FLOW VARIABLES:

*A flow variable is a variable that is measured over a period of time. As a result, a flow is measured per unit of time (say a year). In this sense, flow is comparable to rate or speed.

* The entire value of transactions (sales or purchases, revenues or expenditures) throughout an accounting period is referred to as a flow. We may calculate the number of stock turns (or rotations) in an accounting period by dividing the flow value of an economic activity by the average stock value throughout that accounting period.

* A stock's flow (or "rate") fluctuates over time. In most cases, we can tell the difference between inflows (stock additions) and outflows (stock removals) (subtracting from the stock). Flows are usually monitored over a set period of time.