In the context of monetary economics, the 'Velocity of Circulation of Money' refers to:
A. The rate of interest
B. The rate of inflation only
C. The average number of times a unit of money is used to purchase final goods and services in a given period
D. The growth rate of the money supply
Answer: Option C
Solution (By JKSSB Mock Tests)
Velocity of money measures how frequently the average unit of currency is spent on final goods and services during a given time period; it appears in the equation of exchange.
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