Question

explain transaction demand for money ? 4 marks​

Answer 1

Answer:

The transactions demand for money refers specifically to money narrowly defined to include only its liquid forms, especially cash and checking account balances. This form of money demand arises from the absence of perfect synchronization of payments and receipts.

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Answer 2

Explanation:

Transaction demand for money is the amount of money required for current transactions of individuals and firms. It is the quantity of money that all the Individuals and firms desire to keep on hand for the purpose of financing their forthcoming expenditure.