The velocity of money is
A) the number of times a dollar bill exchanges hands in a year.
B) the ratio of deposits to money supply.
C) the number of times the Fed increases money supply in a year.
D) the relationship between money supply and money demand.

Question

Quizplus · Accepted Answer

The velocity of money is defined as the number of times a dollar bill changes hands in a year. In other words, it measures the frequency with which money is spent within an economy.

The Velocity of Money Is