Which of the following is not a flow variable?
Income
Capital formation
Supply of money in a country
Leakage of water from the overhead tank
The correct option is B, Supply of money in a country
Money supply is a stock variable.
Q25. Consider the following statements:
1. Hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit.
2. These speculative capital flows are called ‘Hot money’ because they can move very quickly in and out of markets.
Which of the above statements are correct?