The desire of people to hold money as a medium of exchange describes what type of money demand?

Question

Quizplus · Accepted Answer

The transactions demand for money is the desire of people to hold money as a medium of exchange, to facilitate transactions in the economy. The asset demand for money refers to the desire of people to hold money as a store of value or an asset, while investment demand refers to the desire of individuals and firms to invest in assets such as stocks and bonds for the purpose of generating income or capital gains. The velocity of circulation refers to the number of times that a unit of money changes hands in a given period of time in the economy.

The Desire of People to Hold Money as a Medium