Which of the Following Will Reduce the Velocity of Circulation

question 77

Multiple Choice

Which of the following will reduce the velocity of circulation of the money stock?

• A)The inflation rate increases.
• B)The interest rate falls.
• C)Credit cards are used more frequently.
• D)More employees are paid once a week instead of once a month.

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Definitions:

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Consolidation

The joining of two corporations.