Many banks offer accounts featuring "Automatic Transfer from Savings" allowing customers to overdraw checking accounts and the bank will transfer enough funds to cover the check automatically.Most likely, what is the effect of this feature on velocity?

Question

Quizplus · Accepted Answer

The "Automatic Transfer from Savings" feature increases the likelihood of transactions occurring by automatically transferring funds from savings to checking to cover any overdrafts. This can lead to an increase in the frequency of transactions and therefore an increase in velocity.

Many Banks Offer Accounts Featuring "Automatic Transfer from Savings" Allowing