Velocity of Money refers to how quickly money circulates within an economy. It measures how frequently one unit of currency is used to purchase goods and services during a specific period.
Related terms
Monetary Policy: Actions taken by central banks to control and influence interest rates and money supply.
Consumer Spending: The total expenditure by individuals on goods and services within an economy.
Liquidity Preference: People's desire to hold cash rather than invest or spend it due to uncertainty or preference for immediate access to funds.