The velocity of money is equal to
A) $\text { 1/MPS. }$
B) $\text { nominal GDP/M. }$
C) $1 / \text { reserve ratio. }$
D) $\text { nominal GDP/P. }$

Question

Quizplus · Accepted Answer

The velocity of money is defined as the rate at which money circulates, changes hands, or is used in the economy in a given period. It is calculated as the nominal GDP divided by the money supply (M), hence option B is correct.

The Velocity of Money Is Equal to A) 1/MPS. \text { 1/MPS. } 1/MPS.

The Velocity of Money Is Equal to
A) $\text { 1/MPS. }$