Velocity Measures

question 88

Multiple Choice

Velocity measures

• A)the average length of time that people hold wealth
• B)how fast aggregate spending will increase for a given decline in money demand
• C)how fast inflation will rise for a given increase in the money supply
• D)how quickly money changes hands
• E)how quickly banks can create money

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Definitions:

Total Assets Ratio

Total assets ratio is a financial metric used to assess a company's efficiency in using its assets to generate revenue.

Net Income

The net income a company earns once all expenses and taxes are subtracted from the total revenue.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet account balances to calculate cash flow from operating activities.