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 allows customers to overdraw their checking accounts, which means that there will be more frequent transfers between the two accounts. This will increase the velocity of money because the same amount of money is being used more frequently in different transactions.

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