Question : Which of the following are true?
- Capital formation is the flow concept
- Inventory is a stock variable.
Option 1: Both are true.
Option 2: Both are false.
.
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true
Answer (1)
18th Jan, 2024
Correct Answer:
Both are true.
Solution :
Capital formation is measured over a period of time and therefore it is a flow concept.
Inventory is a stock variable as it is measured at a point of time.
Hence, Option A is correct.
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