Ask Question
BusinessBusiness
25 June, 12:32

The transactions demand for money is most closely related to money functioning as a

+3
Answers (1)
  1. 25 June, 14:25
    0
    The function of money as medium of exchange is most closely related to the overall demand for monetary transaction.

    Explanation:

    The transaction demand for money basically reflects the overall demand for monetary transactions in the economy which is essentially determined by the respective demands for goods and services and how many times they are commercially exchanged or traded in various markets in the economy. Therefore, the higher the commercial flow or movement of goods and services in the economy, the higher will be the demand for money in the economy. Now, one of the important functions of money is medium of exchange meaning that it is practically accepted as an universal medium of exchange for buying and selling any product or service in any economy or country across the world. Since, money is the only acceptable unit or medium of exchange for any commercial transaction or exchange, the demand for monetary transaction is also practically related to the money being used as unit or medium of exchange.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The transactions demand for money is most closely related to money functioning as a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
True / false any procedure that is used to make employee selection decisions is construed to be a test.
Answers (1)
Identify four reasons that an international airline such as Southwest or Delta would invest in a project when an analysis using both payback period and net present value indicates it to be a poor investment. (Hint: Think about qualitative factors.
Answers (1)
Hankins Corporation has 6.1 million shares of common stock outstanding, 314,000 shares of 4.5 percent preferred stock outstanding, par value of $100, and 67,000 5.5 percent semiannual bonds outstanding, par value $2,000 each.
Answers (1)
Susan asked mary to turn up the radio, so mary increased the volume from level 5 to level 7. mary could hear the difference but susan couldn't. they differed in their:
Answers (1)
Given the rapid advancements in technology in developed countries and fast pace of globalization, it is not possible to bridge the global digital divide. Do you agree with this statement?
Answers (1)
New Questions in Business
This year, major healy paid $ 40,000 of interest on a mortgage on his home (he borrowed $ 800,000 to buy the residence in 2015;
Answers (1)
Inflation that is out of control is referred to as
Answers (1)
Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run. a. True b. False
Answers (1)
Amanda is a 30% partner in the ACW Partnership with an outside basis of $22,000. ACW distributes land with a basis of $12,000 and fair value of $18,000 to Amanda in complete liquidation of her interest.
Answers (2)
If profits are positive in the short run in a perfectly competitive industry, which of the following would you NOT expect to happen as the market moves to the long run? A. Each firm will decrease output. B. Profits of each firm will fall. C.
Answers (1)
Home » Business » The transactions demand for money is most closely related to money functioning as a
Sign Up Forgot Password?