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Transaction Demand

   Also found in: Wikipedia 0.01 sec.
Transaction demand (for money)
The money needed to accommodate a firm's expected cash transactions.

Transaction Demand
The amount of money needed to cover the needs of an individual, firm, or nation. That is, transaction demand for money is a measure of how much of a certain currency people need in order to buy the goods and services they use. Generally speaking, if an economy is healthy, there is a high transaction demand for money because people are buying more goods and services. Conversely, if an economy is in trouble, people buy fewer goods and services. Unless there is a significant, sudden change in the transaction demand, central banks have little trouble adjusting the money supply to accommodate the changes that do occur.


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Every other financial transaction demands that the person you hand money to gives you proof of payment.
The study found that customers who had a greater transaction demand as well as a higher ability" to use self-service options were faster to adopt online banking.
1952): "The Transaction Demand for Cash: An Inventory Theoretic Approach", Quarterly Journal of Economics 66, pp.
 
 
 
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