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

Question

Quizplus · Accepted Answer

The demand for money that a person holds for the purpose of making transactions in order to purchase goods and services is known as transactions demand. Nominal balance demand, real balance demand, precautionary demand, and speculative demand are other types of demand for money, but they do not apply to money held specifically for the purpose of making transactions.

If a Person Is Holding Money for the Purchase of Goods