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The Demand For Money Is Purely A Transactionary

The demand for money is purely a transactionary demand

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Title: The demand for money is purely a transactionary demand

Essay Details:

Subject: Business

Author: Joseph J

Date: September 29, 2014

Level: University

Grade: A

Length: 7 / 1830

Essay text:

And these reasons are: the transactions motive, the precautionary motive and the asset or speculative motive. These motives are known as theories of money demand. Money ? anything which is generally acceptable as a means of payment and which fulfil the four key ?functions of money', namely acting as a medium of exchange, unit of account, store of value and standard of deferred payment. In other word, money is a stock. It is the quantity of circulating currency and deposits held at any given time. We hold money now to spend it later. People can hold their wealth in various forms ? money, bills, bonds, equities and property...

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