transaction demand for money
transaction demand for moneythe
demand for MONEY balances that are held to finance day-to-day expenditure between the periodic receipt of INCOME (e.g. weekly wages, monthly alaries). The amount of money held for such purposes is dependent on the level of income (and expenditure). The transaction demand for money, together with the PRECAUTIONARY DEMAND FOR MONEY (money held to cover for unforeseen contingencies) and the SPECULATIVE DEMAND FOR MONEY (money held to purchase BONDS in anticipation of a fall in their price), constitute the MONEY-DEMAND SCHEDULE. See LIQUIDITY PREFERENCE, L-M SCHEDULE.