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Money supply is a _… (Class 12 Economics 2026, Q3)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/5/1 · 1 mark · MCQ

CBSE Class 12 Economics 2026: question 3

Set in the CBSE Class 12 board exam of 2026, paper 58/5/1, section A, question 3, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q3 · 1 mark · MCQMoney and Banking

Money supply is a ___________ variable, as it refers to the total volume of money held by the ___________ at a particular point of time. (Choose the correct option to fill in the blanks)

  1. (A)stock, banks
  2. (B)flow, banks
  3. (C)stock, public
  4. (D)flow, public

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Is money supply measured over a period or at a point of time?

Hint 2

Money held by banks themselves is not counted.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Money supply is measured at a point of time (e.g. as on 31st March), so it is a stock variable, not a flow.

  2. It is the total money held by the public (households and firms), excluding money held by the government and the banking system itself. Option (C).

    1 mark

Answer: (C) stock, public

Where the marks are

  • Money supply is a stock held by the public (1 mark)

Revise the chapter

  • Chapter: Money and Banking (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Banking, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.