If a person is holding money for the purchase of goods and services,this demand for money is known as

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The demand for money in order to purchase goods and services is known as transactions demand. Speculative demand refers to holding money in anticipation of future changes in the value of financial assets, while precautionary demand refers to holding money as a precaution in case of unforeseen expenses or emergencies. Real balance demand refers to the demand for money in relation to the real purchasing power it provides, while nominal balance demand is not a commonly used term.

If a Person Is Holding Money for the Purchase of Goods