Which of the Following Will Tend to Increase Velocity

question 165

Multiple Choice

Which of the following will tend to increase velocity?

• A)a decrease in the number of payments 
• B)a decrease in inflation 
• C)an increase in interest rates 
• D)an increase in the money supply 
• E)All of the above.

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Definitions:

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a set timeframe.

Swap Contract

A financial agreement between two parties to exchange sequences of cash flows for a set period according to specified terms.

Option Contract

A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time period.