The Velocity of Money Will Be Unstable If Banks Make

question 35

True/False

The velocity of money will be unstable if banks make a sharp change in the amount of cash they hold.

---

Definitions:

Cash Outflows

Money that is spent or invested, flowing out of a business or individual's account.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

The amounts a company owes to its suppliers or creditors for goods or services received that are not yet paid for.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.