Question : The velocity of circulation of money is _______.
Option 1: k times the value of transactions
Option 2: the number of times a unit of money changes hands during the unit period
Option 3: the number of times the same transactions can be repeated by a given volume of money supply
Option 4: the ratio of money balance to the value of transactions
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Correct Answer: the number of times a unit of money changes hands during the unit period
Solution : The correct option is the number of times a unit of money changes hands during the unit period .
The velocity of circulation of money is a concept in economics that refers to the number of times a unit of money is used in transactions within an economy during a specific period, typically a year.
Mathematically, the velocity of circulation (V) is expressed as:
V = P × Y/M
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Question : At a certain annual rate (rounded off to the nearest integer) of simple interest, a sum of money becomes nine times its original value in 21 years. By how much does the rate of interest change if the same sum of money has to become 12 times its original value in 25 years?
Question : Supply of money is the quantity of money____________.
Question : It is possible to derive the value of the Gross Domestic Product (GDP) of a country. Which function of money is applicable here?
Question : Which of the following statements is true? A) Money Supply is a stock concept B) Currency and Coins with the public are not included in the M3 measure of money supply
Question : Which of these is one of the functions of the Government budget?
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