What is the transaction demand for money?

The amount of money required for current transactions of companies and individuals is known as transaction demand for money. An example of transaction demand for money is carrying money in your pocket to buy groceries, utensils, to buy a train ticket etc. You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

Further readings:

  1. Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
  2. Monetary Policy – Objectives, Role, Instruments

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