--%>

Basic determinant of transactions demand and asset demand

Describe the basic determinant of (a) the transactions demand and (b) the asset demand for money? 

E

Expert

Verified

(a) The level of nominal GDP. The superior this level, the greater the amount of money demanded for transactions. (b) The interest rate.  The greater the interest rate, the lesser the amount of money demanded as an asset.

   Related Questions in Finance Basics

  • Q : Negative consequences of company

    Explain negative consequences of a company holding too much cash? A company holding too much cash would be giving up the chance to invest more in income generating assets

  • Q : Describe the fact of common

    Normal 0 false false

  • Q : Define Executive Order Executive Order

    Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu

  • Q : Can a company hold a default rate on

    Can a company hold a default rate on its accounts receivable that is too low? Describe. A company could hold a default rate on AR which would be considered too low if by liberalizing credit terms a significant rise in sales revenue and cash inf

  • Q : Define Assembly Assembly : The

    Assembly: The California's lower house of Legislature included of 80 members. As an outcome of Proposition 140 (that is, passed in 1990) and Proposition 28 (that is, passed in 2012), members elected in or after 2012 might serve 12-years in the Legisla

  • Q : Question on aggregate supply Normal 0

    Normal 0 false false

  • Q : Production possibilities curve based

    Given is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Illustrates these data graphica

  • Q : What are Federal Funds Federal Funds :

    Federal Funds: For legal basis budgeting purposes, categorization of funds into which the money received in trust from an agency of the federal government will be deposited and finished by a state department in accordance with state and/or federal rul

  • Q : Change in GDP Normal 0 false false

    Normal 0 false false

  • Q : Describe Form 22 Form 22 : It’s a

    Form 22: It’s a department’s request to transfer money to the Architectural Revolving Fund (example, for building enhancements), reviewed by the Department of Finance.