If you earn and spend $300 per week and maintain an average cash balance of $100 per week, your velocity of money is
A) $100.
B) $200.
C) 3.
D) 2.

Question

Quizplus · Accepted Answer

The velocity of money is calculated as the ratio of total spending to the average cash balance. Here, the total spending is $300 per week, and the average cash balance is $100. Thus, the velocity of money is $300 / $100 = 3.

If You Earn and Spend $300 Per Week and Maintain