The quantity of money demanded is the
A) average daily volume of bank account withdrawals.
B) amount that people and businesses choose to hold.
C) fraction of cash holdings in an average investment portfolio.
D) income and volume of profits that people and businesses would like to receive.
E) sum of checkable and savings deposits at banks.

Question

Quizplus · Accepted Answer

The quantity of money demanded refers to the amount of money that people and businesses choose to hold, which is typically affected by factors such as interest rates and overall economic activity. It is not specifically related to withdrawals or deposits, cash holdings in investment portfolios, or desired income or profits.

The Quantity of Money Demanded Is the