Velocity of circulation of money means ?
Correct answer: C. The number of times a unit of money changes hands annually
- A. The number of times a unit of money changes hands daily
- B. The number of times as unit of money changes hands monthly
- C. The number of times a unit of money changes hands annually
- D. The number of times a unit of money changes value
Explanation
Velocity of money measures how many times, on average, one unit of money is used in transactions during a given period. In national-income calculations the period is normally one year, making annual velocity the intended answer.
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