highlight the factor determining the transactions demand for money.
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plss...i need answer.
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The key factors which influences the demand for money are as follows-
The level of inflation in an economy.
The phase through which economy is passing.i.e economic recovery, boom, recession etc.
Disposable income with the people in a particular economy.
The aggregate demand present in an economy.
Interest rate policy followed by The Central Bank or The Government in some cases.
Speculative motive.
Money velocity- the speed with which money changes hands.
The condition of liquidity trap.
Presence of alternative assets in an economy.
The extent of grey economy.
The level of inflation in an economy.
The phase through which economy is passing.i.e economic recovery, boom, recession etc.
Disposable income with the people in a particular economy.
The aggregate demand present in an economy.
Interest rate policy followed by The Central Bank or The Government in some cases.
Speculative motive.
Money velocity- the speed with which money changes hands.
The condition of liquidity trap.
Presence of alternative assets in an economy.
The extent of grey economy.
tnks
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