The velocity of money is the:
A) number of times per year each dollar is used to transact an exchange.
B) rapidity of price increases during inflation.
C) number of times the price level increases during a year.
D) time it takes for checks to clear banks.
E) number of times per year each product is purchased during the year.

Question

Quizplus · Accepted Answer

The velocity of money refers to how often a unit of currency is used to purchase goods and services within a given period of time. It is typically measured as the number of times per year that each dollar is spent on transactions.

The Velocity of Money Is The