Transaction demand

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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 ?
Our growth and pending transactions demand that public information be updated at this time.
The payment data and studies referred to in the last two sections point to the transactions demand for government base money now being in decline.
1952): "The transactions demand for cash: An inventory theoretic approach", The Quarterly Journal of Economics, Vol.
A third important development in the credit card market is an increase in the transactions demand for credit cards.
Banking deregulation in the 1980s and 1990s and financial innovation in the 1990s associated with the development of electronic payments indeed suggest we need to reconsider the measure of transactions demand for money.
The transactions demand at open and close in the underlying assets markets are studied in the presence of information costs using the main concepts in Merton's (1987) model of capital market equilibrium with incomplete information.
The Transactions Demand for Cash: An Inventory-Theoretic Approach," Quarterly Journal of Economics, vol.
Dowd, Kevin, "The Value of Time and the Transactions Demand for Money.
If money is restricted to coins, currency, and bank accounts, the factors affecting the transactions demand will be very important.
2] is fully explained by the increase in transactions demand for money induced by the increase in output from [y.
We show that transactions demand at open and close in options markets and the underlying assets markets are greater than at other times of the day.

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