The Number of Times Per Year, on Average, That a Dollar

question 29

Multiple Choice

The number of times per year, on average, that a dollar is spent on final goods and services is known as

• A) the money supply.
• B) the equation of exchange.
• C) the price of money.
• D) the income velocity of money.

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Definitions:

Journal

A journal in accounting refers to a detailed record of all the financial transactions of a business, showing the debits and credits for each transaction.

Trial Balance

An accounting worksheet compiling all ledger balances into debit and credit columns that balance equally.

Debit Balances

The situation where the total debits in an account exceed the total credits, indicating assets or expenses.

Credit Balances

Balances in financial accounts indicating the amount owed by the account holder, often seen in liability and equity accounts.