If you earn and spend $2,000 per month and maintain an average cash balance of $500 per month, your velocity of money is
A) $1,250.
B) 2.
C) 4.
D) $1,500.

Name: If you earn and spend $2,000 per month and maintain an average cash balance of $500 per month, your velocity of money is A) $1,250. B) 2. C) 4. D) $1,500.
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Question

Quizplus · Accepted Answer

The velocity of money is calculated by dividing the total amount of money spent by the average cash balance. Here, $2,000 spent divided by $500 average balance equals a velocity of 4.

If You Earn and Spend $2,000 Per Month and Maintain