The transactions demand for money is most closely related to money functioning as a:
A)unit of account.
B)medium of exchange.
C)store of value.
D)both store of value and unit of account.

Question

Quizplus · Accepted Answer

The transactions demand for money refers to the motive for holding money as a medium of exchange to make transactions. This is because money is widely accepted as a means of payment for goods and services. The other functions of money (unit of account and store of value) are less relevant for the transactions demand for money.

The Transactions Demand for Money Is Most Closely Related to Money