velocity of money

Popular Terms
Rate at which money circulates, changes hands, or turns over in an economy in a given period. Higher velocity means the same quantity of money is used for a greater number of transactions and is related to the demand for money. It is measured as the ratio of GNP to the given stock of money. Also called velocity of circulation.

Use 'velocity of money' in a Sentence

The velocity of money in times of prosperity is much higher than the velocity of money in times of recession.
17 people found this helpful
The velocity of money was an interesting thing to keep track of, because one minute it was here and the next it was there.
16 people found this helpful
The velocity of money greatly increases when the economy is up and it is a holiday season, especially from Thanksgiving through New Years Day.
15 people found this helpful




Email Print Embed