To which function of money is the transactions demand most closely related?

Question

Quizplus · Accepted Answer

The transactions demand for money refers to the demand for money as a medium of exchange to carry out day-to-day transactions, such as buying goods and services. Therefore, the transactions demand is most closely related to the function of money as a medium of exchange (option B). The unit of account function (option A) refers to the use of money as a measure of value for goods and services, while the store of wealth function (option C) refers to the use of money to save and store value over time. The asset demand for money (option D) refers to the demand for money as a form of investment or speculative asset.

To Which Function of Money Is the Transactions Demand Most