Which of the Following Will Increase the Velocity of Circulation

question 114

Multiple Choice

Which of the following will increase the velocity of circulation?

• A)Interest rates increase.
• B)The inflation rate decreases.
• C)Federal banking legislation abolishes credit cards.
• D)Employers decide to pay employees once a month instead of once a week.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks or bonds.

Horizontal Analysis

A method of financial examination that involves comparing past financial information across different time frames to detect trends and patterns of growth.

Accounts Receivable

Funds that clients or customers owe to a company for products or services that have been provided but not yet compensated.

Percentage Of Increase

A measure expressed as a percentage that reflects the rise in value or quantity of something compared to its previous value.