Velocity of Money

What does it Mean? A term used to describe the rate at which money is exchanged from one transaction to another.
Investopedia Says... Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. This helps investors gauge how robust the economy is. It is usually measured as a ratio of GNP to a country's total supply of money.

Terms Related Links

Economy
Equation Of Exchange
GNP
Money Supply

Terms Related Links
Measure Momentum Change With ROC - Learn how to build a price rate of change indicator and incorporate it in your strategy.

Getting to Know Oscillators - Part 4: Momentum - Learn about the measurement of speed or velocity of price changes.



add investopedia foot
www.investopedia.com