Assertion (A): Saving is a flow but savings (accumulated wealth) are a stock.
Reason (R): Saving is measured over a period, while accumulated savings are measured on a date.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Saving per year adds to the stock of savings, just as a flow of water fills a tank.
R states the time dimension that makes A true.

Concept: Saving and savings
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsStocks and flows

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter All 72 questions in Basic Concepts & the Circular Flow Revise the notes for Basic Concepts & the Circular Flow

Assertion (A): Saving is a flow but savings (accumulated wealth) are a stock.Reason (R): Saving is measured over a period, while accumulated savings are measured on a date.

Explanation

Assertion (A): Saving is a flow but savings (accumulated wealth) are a stock.
Reason (R): Saving is measured over a period, while accumulated savings are measured on a date.