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The demand for money Group of answer choices represents the need to hold some income and...

The demand for money

Group of answer choices

represents the need to hold some income and wealth in the form of money in order to purchase goods and services.

is equal to M1.

is controlled by the Federal Reserve.

represents the unlimited desire to have as much money as possible to buy as many goods and services as possible.

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Answer #1

The demand for money

Answer: represents the need to hold some income and wealth in the form of money in order to purchase goods and services.

Explanation: demand for money means the desire to hold some of the financial assets in the form of money that is, cash or bank deposits rather than investments. It is also known as liquidity preference. There are two types of demand for money- 1) transaction demand where money is needed to buy goods; 2) precautionary demand where money is kept so as to meet any unforeseen financial emergency.

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