The velocity of money is:
A) how quickly money can be printed
B) how quickly individuals spend their income
C) the average number of times a dollar is used in a transaction per year
D) how many times individuals are paid per year
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The velocity of money refers to the number of times a unit of currency (usually a dollar) is used to buy goods or services within a given time period, typically a year. It is calculated by dividing GDP by the money supply.

The Velocity of Money Is