When people want to hold money to make regular planned expenditures, this is

Question

Quizplus · Accepted Answer

The transaction demand for money is the demand for money that arises from the need to make regular planned expenditures. This includes money held for paying for goods and services, paying bills, and making other routine transactions. Therefore, choice A is the correct answer. The asset demand for money refers to the demand for money as a store of value, while the precautionary demand for money relates to the desire to hold money as a buffer against unexpected expenses or emergencies. The spending demand for money is not a commonly used term in economics.

When People Want to Hold Money to Make Regular Planned