If a university student performs a higher number of transactions each year using the same amount of cash, there has been an increase in her velocity of money.

Question

Quizplus · Accepted Answer

The velocity of money refers to the frequency at which a unit of currency is used for transactions. If the student performs more transactions with the same amount of cash, it indicates that the money is circulating more quickly, thus increasing its velocity.

If a University Student Performs a Higher Number of Transactions