Question

The quantity of money demanded is the Group of answer choices income and volume of profits that people and businesses would like to receive. average daily volume of bank account withdrawals. amount that people and businesses choose to hold. fraction of cash holdings in an average investment portfolio.

Answer 1

Answer:

The amount that people and businesses choose to hold.

Explanation:

The amount that people and businesses choose to hold.

The total demand for money is the total amount of money that people wants to hold and there are three main reasons for which money is being held. First is transactions related reason, second is the precautionary reason, and third is the speculative reason. The above three reasons push the people to hold the money that becomes the total demand for money.