In the Second Quarter of 1995, the Following Values Were

question 209

Multiple Choice

In the second quarter of 1995, the following values were observed: real GDP = 4,359.3 billion; GDP Deflator = 325.1; and M1 = 989.5.What is the value of velocity?

• A)32.51 
• B)24.31 
• C)14.32 
• D)2.31

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Current Liabilities

Short-term financial obligations that a company is required to pay within one year, such as accounts payable and short-term loans.

Current Assets

Current assets refer to the resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.

Profits

The financial gain realized when the revenue from business activities exceeds the expenses and costs.