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Which of the following are correct statements related to stock and flow?

A. Flows are defined over on 1st January

B. Flows are defined over a period of time

C. Flows and stocks are defined as a mutual understanding

D. Stocks are defined from January to December

E. Stocks are defined at a particular point of time

Choose the correct answer from the options given below:

Solution

Correct Option: 1

Flows are variables measured over a period of time, making B correct. Stocks are variables measured at a particular point in time, making E correct. Statements A, C and D misrepresent these definitions. Hence only B and E are correct.

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