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 cheques to clear banks.
E)number of times per year each product is purchased.

Question

Quizplus · Accepted Answer

The velocity of money refers to the number of times per year that a dollar is used to transact an exchange. It represents how quickly money is changing hands within an economy.

The Velocity of Money Is The