The Velocity of Money Increases for All of the Following

question 23

Multiple Choice

The velocity of money increases for all of the following reasons except

• A)use of electronic transmission of funds
• B)increased use of charge accounts
• C)increased use of automatic teller machines
• D)a rising inflation rate
• E)decreased use of credit cards

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream, often leading to inefficiency and increased costs.

Lot Sizes

The quantity of goods processed, produced, purchased, or delivered in a single batch or order, affecting manufacturing efficiency and inventory management.

Operational Improvements

Enhancements or optimizations made to the processes and procedures of an organization to increase efficacy, efficiency, and overall performance.

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and maintenance.