distinguish between stock and flow . give an example of each . ( 5 points each )

●Stocks:● (1.) Stocks associate to a point of time. (2.) It does not have any dimension of time. (3.) Stocks are influenced by flows for example, the higher is the saving, and the higher is the stock of wealth. (4.) Examples: Capital, bank deposits, water in a tank. (5) The variables that are measured at a particular point of time. For example, bank balance as on 1st Oct 2010 is Rs.5000. ■Flows:■ (1. )They are associated with a span of time. (2. )They hold a dimension of time. (3. )Stocks effect flows. (4.) Examples: Capital formation, interest on capital, water flowing in a stream. (5) The variables that are measured over an interval of time. For example, interest earned on bank deposits for 1 year, i.e. from 1 Oct-2009 to 30 Sep 2010