Transaction demand

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.
References in periodicals archive ?
The activity will recover as the transaction demand for currency is met"
The operations of commercial banks are seeing continuous expansion throughout the country as their Automated Teller Machines (ATM) network increased to 9,018 by the end of December 2014 for meeting increased cash transaction demand of customers.
Besides that, the tax rate decrement has smaller influence on multiplicative national income growth than the public expenditure increment, because the disposable income increment (after the tax rate decrement) doesn't go in higher transaction demand as a whole (as it is a case in public expenditure increment), but only in one part and the rest is saving increment.
The associate locks the drawer and moves to the platform if a customer transaction requires that shift or if there is heavy transaction demand to be covered on the platform side?
This means lenders are making funds available at a faster pace than the growth in unit transaction demand.
Recent quantitative analysis, however, shows the transaction demand for government base money to be falling, a development that can be expected to continue in the years ahead.
The Transaction Demand for Cash: An Inventory Theoretic Approach," Quarterly Journal of Economics 66, November, 545-556.
1952): "The Transaction Demand for Cash: An Inventory Theoretic Approach", Quarterly Journal of Economics 66, pp.
However, the increase in these opportunities has also enabled the growth of a substitute for the transaction demand for credit cards--the use of debit cards.
With a detailed forecast in hand, workforce management software's most impressive trick is to consider the competing needs of the business to meet transaction demand while simultaneously meeting the life needs of the center's agents.
At the same time, when the complexities of a transaction demand it, the firm can provide strength in depth from experienced specialists.
Section III employs the reasoning developed above to address the viability of interest rate policy in the event that technological progress in the payments system causes the transaction demand for bank reserves and currency to shrink significantly and even to disappear completely.

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