Question

Money demand refers to a. how much income people want to earn per year. b. how much currency the Federal Reserve decides to print. c. how much wealth people want to hold in liquid form. d. the total quantity of financial assets that people want to hold.

Answer 1

Answer:

The answer is C. how much wealth people want to hold in liquid form

Explanation:

Money demand is the demand for holding cash. Money demand is also desired holding of money, whether the money is cash at hand or bank deposits. This can be likened to the transactional motive of holding money.

Money demand is affected by the following: level of income, inflation, interest rate etc...