The Velocity of Money Is

question 78

Multiple Choice

The velocity of money is

• A)the average number of times that a dollar is spent in buying the total amount of final goods and services.
• B)the ratio of the money stock to high-powered money.
• C)the ratio of the money stock to interest rates.
• D)the average number of times a dollar is spent in buying financial assets.

---

Definitions:

Financial Ratios

Quantitative measures derived from a company's financial statements used to assess its financial health, performance, and stability.

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its liquid assets, critical for assessing financial health.

Asset Management Ratios

Financial metrics that assess how efficiently a company is using its assets to generate revenue, including turnover ratios for receivables, inventory, and assets.

Leverage Ratios

Financial metrics used to assess the degree of debt in a company's capital structure and its ability to meet financial obligations.