The demand for money is determined by
A)the behaviour of the private sector.
B)the behaviour of the consumer and the firm.
C)the behaviour of the government.
D)the behaviour of the chartered banks.
E)the behaviour of the Bank of Canada.

Question

Quizplus · Accepted Answer

The demand for money is primarily determined by the behaviour of the consumer and the firm, as they are the ones who need to hold money to make transactions and meet their day-to-day expenses. While the behaviour of the government, chartered banks, and the Bank of Canada can also influence the demand for money, they do not have as direct of an impact as the private sector.

The Demand for Money Is Determined by