Question

What is the velocity of circulation of money?

Answer 1

Answer:

The velocity of money is a measure of the number of times that the average unit of currency is used to purchase goods and services within a given time period. The concept relates the size of economic activity to a given money supply and the speed of money exchange is one of the variables that determine inflation.

Answer 2

Answer:

Velocity of circulation of money refers to the number of times a unit of money exchanges hands during a unit period of time.