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    Question

    What describes the velocity of circulation of

    money?
    A The ratio of money balance to the value of transactions Correct Answer Incorrect Answer
    B k times the value of transactions Correct Answer Incorrect Answer
    C The number of times the same transactions can be repeated by a given volume of money supply Correct Answer Incorrect Answer
    D The number of times a unit of money changes hands during the unit period Correct Answer Incorrect Answer

    Solution

    The velocity of money is defined as how often a unit of currency is used in a fixed period of time. It measures the rate at which money circulates in the economy and is used to assess economic activity.

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