Velocity Can Be Computed with the Formula

question 212

Multiple Choice

Velocity can be computed with the formula

• A)(Annual spending)/(Money supply).
• B)(Annual income)/(Annual spending).
• C)(Average income)/(Average spending).
• D)(Money supply)/(Average income).

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Definitions:

Quarterly Withdrawal

The act of removing funds from an account or investment four times a year, typically every three months.

Present Values

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to address the time value of money.

Annuities

An investment product sold by financial institutions that pays out a fixed stream of payments to the individual, and is often used as an income stream for retirees.

Compute

To calculate or determine by mathematical means.