which of these two is flow or stock concept . giving reasons ?
1) saving
2) consumption
Dear Student,
1. Savings - Stock Concept
Reason: As it is measured at a particular time so it will be a stock concept. In other words, it is measured only at a single point of time. For example, we say, the saved amount in my account is Rs 50,000.
2. Consumption - Flow Concept
Reason: It is measured over a period of time. It has an element of time attached with it. For example, we say, the monthly consumption of fuel is Rs 40,000.
Hope this clarifies your doubt.
Keep posting!!
1. Savings - Stock Concept
Reason: As it is measured at a particular time so it will be a stock concept. In other words, it is measured only at a single point of time. For example, we say, the saved amount in my account is Rs 50,000.
2. Consumption - Flow Concept
Reason: It is measured over a period of time. It has an element of time attached with it. For example, we say, the monthly consumption of fuel is Rs 40,000.
Hope this clarifies your doubt.
Keep posting!!