What Is the Effect on Velocity If Payments Are Made

question 38

Multiple Choice

What is the effect on velocity if payments are made more often?

• A)It will decrease.
• B)It will increase.
• C)It will remain constant.
• D)Velocity is unrelated to payments.

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Definitions:

Voidable Title

A legal condition referring to a situation where a title or ownership can be invalidated at the discretion of one party due to certain conditions, such as fraud.

Void

A term applied to a contract that is not valid because its object is illegal or it has some defect that is so serious that it is not a contract.

CIF

Cost, Insurance, and Freight, a term used in international trade that indicates the seller is responsible for covering these expenses until the goods reach the purchaser's specified port of destination.

Cost

The value, usually in monetary terms, required to produce, acquire, or maintain a good or service.