The transaction demand for money in an economy can be written in the following form as, 1/k.M_t^d = T, or v.M_t^d = T in the above expression v refers to: Option 1: Velocity of circulation Option 2: Total value of (nominal) transactions Option 3: Total value of money supply Option 4: Transaction demand for money

The answer is 'Velocity of circulation'. View full solution:

CUET Economics - The transaction demand for money in an economy can be written in the following form as, 1/k.M_t^d = T, or v.M_t^d = T in the above expression v refers to: | PYQs + Solutions

CUET Economics 2026 19th May Shift 2

Macro

Easy

Velocity of circulation

Total value of (nominal) transactions

Total value of money supply

Transaction demand for money

✅ Correct Option: 1