Velocity Of Money

Running head : VELOCITY OF MONEY[Author s Name][Tutor s Name][Class]AbstractMeasuring velocity is important for stake the economic implications of funds circulation in economic system . In straightforward terms , investors frequently use velocity of cash to streak the quality and effectiveness of the major monetary proceeding in economy . Velocity of notes can overly be effectively used for personal financial purposes and in several(predicate) types of microeconomic calculationsTo begin with , funds is a good that is astray used for financial br purposes and as the instrument of financial transactions that involve transferring services or goods from one calorie-free of economic relationships to another . In other words , money works to promote and facilitate the transfer of goods and services amongst individuals and firms . Professionals in economics commonly differentiate between the triplet wide accepted forms of money : bank money , good money , and fiat money (Dwivedi , 2005 .

Commodity money usuall(a)y has the same time value as that of money . Dollar bills , all the same , are the examples of fiat money the value of which is less(prenominal) than the value of money . Bank money is usually equal by credit and checks . Regardless the type of money in economy money always fulfills the three basic functionsFirst , money is the long suit of exchange . Money is a resistant of barter , a universal instrument which individuals and businesses use to leverage goods and services . With money , ind ividuals do not need to chase for a commodi! ty equivalent but only take a shit to provide predetermine amount of...If you want to get a full essay, tramp it on our website: OrderEssay.net

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