Given below are two statements: Statement I: The number of exchange possibilities that exist in a money economy exceeds the number in a barter economy. Statement II: An increase in the length of time for which money is held will reduce the velocity at which money circulates in the economy. In the light of the above statements, choose the correct answer from the options given below:

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Economics · Monetary Economics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Both Statement I and Statement II are correct

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Answer 1

Statement I is incorrect but Statement II is correct

Answer 2

Statement I is correct but Statement II is incorrect

Answer 3

Both Statement I and Statement II are incorrect

Answer 4

Both Statement I and Statement II are correct

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