Money supply is a _____ concept.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. stock.
Money supply is a stock concept. It represents the total amount of money available in an economy at a particular point in time, including cash, deposits, and other liquid assets. Unlike a flow, which deals with transactions over time, a stock concept focuses on the quantity present at a specific moment. Therefore, money supply helps in assessing the current liquidity position within an economy, impacting inflation, interest rates, and overall economic stability.