The ________ Is the Number of Times a Dollar Bill

question 157

Multiple Choice

The ________ is the number of times a dollar bill exchanges hands in a year.

• A) velocity of money
• B) exchange rate
• C) money supply ratio
• D) government spending multiplier

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Definitions:

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory bodies.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending.

Clear

in an economic or financial context often means to settle a transaction or complete a trade or payment process.

Federal Reserve's Assets

These are financial assets held by the Federal Reserve Bank, including government securities, mortgage-backed securities, and loans to banks.