Keynes called money people hold to make routine day-to-day purchases the:
A) transactions demand for holding money.
B) precautionary demand for holding money.
C) speculative demand for holding money.
D) store of value demand for holding money.

Question

Quizplus · Accepted Answer

Keynes referred to the money people hold to make routine day-to-day purchases as the transactions demand for holding money. The precautionary demand refers to the money people hold as a reserve in case of unexpected expenses, while the speculative demand refers to the money people hold as an investment in anticipation of future price changes. The store of value demand refers to the money people hold as a way to store value over time.

Keynes Called Money People Hold to Make Routine Day-To-Day Purchases