The transactions demand for money is least likely to be a function of the:
A) Price level
B) Interest rate
C) Level of national income
D) Frequency of wage and salary payments

Question

Quizplus · Accepted Answer

The transactions demand for money is primarily influenced by the price level, level of national income, and frequency of wage and salary payments, as these factors affect the need for money for everyday transactions. The interest rate, however, is more related to the speculative and precautionary demand for money.

The Transactions Demand for Money Is Least Likely to Be