Velocity Will Decline If

question 67

Multiple Choice

Velocity will decline if

• A)the public becomes more confident about the economy's future.
• B)there is an increase in the use of credit cards.
• C)automatic teller machines become more accessible.
• D)the crime rate increases.
• E)banks increase the interest rate paid on checking deposits.

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Definitions:

Debit

An entry recorded on the left side of an account ledger, signifying an increase in assets or expenses or a decrease in liabilities, equity, or income.

Unearned Revenue

The liability created by receiving revenue in advance.

Capital Account

A financial statement account that represents the ownership interests or equity in a company.

Closed

In accounting, this term refers to accounts that have been concluded for a period, typically at the end of an accounting cycle, by transferring their balances to permanent accounts.