The transactions demand for money is most closely associated with which of the following functions of money?
A)Standard of deferred payment.
B)Store of value.
C)Standard of value.
D)Medium of exchange.

Question

Quizplus · Accepted Answer

The transactions demand for money refers to the desire to hold money as a medium of exchange for everyday purchases and transactions. This function of money is most closely associated with the medium of exchange function, as money is used to facilitate the exchange of goods and services.

The Transactions Demand for Money Is Most Closely Associated with Which