Transaction theories of money demand emphasize the role of money as a:
A)medium of exchange.
B)store of value.
C)unit of account.
D)standard for making deferred payments.

Question

Quizplus · Accepted Answer

Transaction theories of money demand focus on the function of money as a medium of exchange, meaning that people hold money primarily to make transactions (e.g. buying goods and services) rather than as a store of value, unit of account, or standard for making deferred payments.

Transaction Theories of Money Demand Emphasize the Role of Money