A velocity of ________ means money changes hands, on average, every 4 months.
A) 0.25
B) 1.25
C) 3
D) 4

Question

Quizplus · Accepted Answer

The velocity of money is defined as the number of times a unit of currency is used to purchase goods and services within a given period of time. In this case, if money changes hands, on average, every 4 months, then the velocity of money would be 3 (since there are 12 months in a year and 12/4=3). Therefore, the correct answer is C.

A Velocity of ________ Means Money Changes Hands, on Average