Which of the following statements is true?
A) Money Supply is a stock concept
B) Currency and Coins with public are not included in M3 measure of money supply
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Only A.
- Stock Concept: A stock concept measures the quantity of a particular item at a specific point in time.
- It is like taking a snapshot of an economic variable at a given moment. Examples of stock concepts include wealth, inventory levels, and money supply.