ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
true
|
|
|
false
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The transactions velocity is the economy-wide dollar value of all transactions during a year, divided by the average money supply during the period: Transactions Velocity = Transactions Money . The transactions velocity is the number of times on average that a dollar is used for a transaction.
Detailed explanation-2: -The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. The velocity of money also refers to how much a unit of currency is used in a given period of time.
Detailed explanation-3: -Velocity of money can be defined as the speed at which money flows or is exchanged in an economy.
Detailed explanation-4: -Definition: Velocity of circulation is the amount of units of money circulated in the economy during a given period of time. Description: Velocity of circulation is measured by dividing GDP by the country’s total money supply.