a. transactions demand for money.
b. asset demand for money.
c. creation of fiat money.
d. use of money as a medium of exchange.

1 Answer



b. asset demand for money.


An asset demand for money can be defined as the process which typically involves keeping money as a store of value for use in the future or a later date.

Basically, the main purpose or reason why people hold their money is simply to be able to purchase various goods and services.

In this scenario, a wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the asset demand for money.

Rod Oberbrunner
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answered 1 year ago