The Transactions Demand for Money Is Most Closely Related to Money

question 95

Multiple Choice

The transactions demand for money is most closely related to money functioning as a:

• A)unit of account.
• B)medium of exchange.
• C)store of value.
• D)both store of value and unit of account.

---

Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in the marketplace.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various prices, over a certain period.

Industry Demand

The total demand for all the products or services produced by a particular industry.