Holding money to fund current purchases is called the ________ demand for money.

Question

Quizplus · Accepted Answer

The transactions demand for money is holding money to fund current purchases, such as buying groceries or paying bills. Precautionary demand is holding money for unexpected future expenses, while speculative demand is holding money for investment purposes. Aggregate demand refers to the total demand for money in an economy, and "penultimate" does not apply to this context.

Holding Money to Fund Current Purchases Is Called the ________