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Essay

The demand for money is purely a transactionary demand

Essay specific features

 

Issue:

Business

 

Written by:

Sara B

 

Date added:

June 20, 2014

 

Level:

University

 

Grade:

C

 

No of pages / words:

7 / 1830

 

Was viewed:

5114 times

 

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Essay content:

And these reasons are: the transactions motive, the precautionary motive and the asset or speculative motive. These motives are known as theories of money demand. Money ? anything which is generally acceptable as a means of payment and which fulfil the four key ?functions of money', namely acting as a medium of exchange, unit of account, store of value and standard of deferred payment...
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In other word, money is a stock. It is the quantity of circulating currency and deposits held at any given time. We hold money now to spend it later. People can hold their wealth in various forms ? money, bills, bonds, equities and property. The demand for money refers to the desire to hold money: to keep your wealth in the form of money, rather than spending it on goods and services or using it to purchase financial assets such as bonds or shares...
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