Which Is Likely to Be Larger, the Velocity of M₁

question 155

Multiple Choice

Which is likely to be larger, the velocity of M₁ or M₂?

• A)M₁, because M₂ is a larger number.
• B)M₂, because M₁ is a larger number.
• C)The velocities of both are approximately equal.
• D)The numbers of velocity switch in relative size.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.

Promissory Note

A Promissory Note is a financial instrument wherein one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.

Specified Amount

The exact sum of money stated in a financial document or agreement.

Dishonored Note

A promissory note that was not paid at maturity by the issuer, resulting in a default.