The Velocity of Money Is Defined As

question 3

Multiple Choice

The velocity of money is defined as:

• A)the time it takes the average worker to get to the bank with his/her paycheck.
• B)the time it takes banks to clear checks.
• C)the average number of times per year each dollar is used to purchase final goods and services.
• D)the ratio of money supply to the average price level in an economy.
• E)the average number of times per year each dollar is spent for goods,payrolls,Social Security payments,etc.

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Definitions:

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.

Statute of Frauds

A rule of law that mandates specific contract types to be documented in writing and signed by the accountable party for them to be valid and enforceable.

Oral Agreement

A verbal contract in which the terms have been agreed upon through spoken communication, legally binding in many scenarios but harder to prove in court.