Question

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

Answer 1

Money demand refers to the total quantity of financial assets that people want to hold.

Step-by-step explanation:

Money demand refers to the total quantity of financial assets that people want to hold. It is commonly measured by the M1 money supply, which includes currency in circulation and checkable deposits. These are the amounts held in checking accounts, which can be withdrawn on demand by writing checks or using debit cards. Money demand reflects how much wealth people want to hold in liquid form for transactions and emergency purposes.

Answer 2

Money demand refers to how much wealth people want to hold in liquid form.

Liquid form, liquidity, is referring to spendability regarding money spending from a companies assets. When talking about money demand, this is the wealth a person or business has on hand during any given time and how you want to proceed with the money you have on hand.