The Money exchange rates in an economy are gauged by the concept of velocity of money. GDP is divided by the money supply using the velocity of money equation. The velocity of money formula calculates how frequently one unit of the money supply is exchanged for goods and services within an economy.
The rate at which money in circulation is spent on goods and services can be determined by looking at the velocity of money. Investors and economists use it to assess the strength and vitality of an economy. A healthy, growing economy is typically correlated with high money velocity.
To learn more about economy, click here.
https://brainly.com/question/2421251
#SPJ4