The Velocity of Money Is

question 8

Multiple Choice

The velocity of money is:

• A) how many times the average dollar gets spent per year.
• B) the number of transactions in which a typical dollar is used during a year.
• C) how many times on average the typical dollar changes hands in an exchange during the year.
• D) All of these statements are true.

---

Definitions:

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers to maintain control.

Depositor's Bank Account

An account maintained by an individual at a bank in which they can deposit or withdraw funds.

Bank Fee

Charges imposed by banks for various services or as penalties for not meeting certain banking requirements.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for minor expenses.