The Velocity of Money Is Equal To

question 126

Multiple Choice

The velocity of money is equal to:

• A) nominal GDP divided by the money supply.
• B) real GDP divided by the aggregate price level.
• C) nominal wages divided by the aggregate price level.
• D) real GDP divided by the money supply.

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Definitions:

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations due within one year or within the normal operating cycle of the business, whichever is longer.

Current Ratio

The current ratio is a financial metric that measures a company's ability to pay short-term obligations with its short-term assets.

Short-term Debts

Obligations or loans that are due to be paid within one year or less, typically used to fund immediate operational needs.