Which of the Following Would Tend to Decrease Velocity

question 110

Multiple Choice

Which of the following would tend to decrease velocity?

• A)an increase in interest rates 
• B)more frequent paychecks 
• C)expected decreases in inflation 
• D)more efficient payment systems

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Definitions:

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Financing Activities

Transactions related to raising capital or repaying investors, including issuing equity, obtaining loans, and paying dividends.

Spreadsheet

A digital tool used for organizing, analyzing, and storing data in tabular form, consisting of rows and columns to facilitate calculations and management of information.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts on the balance sheet.