Question

What is the main concern in the study of the demand for money?

A) How much money individuals carry in their wallets
B) The influence of financial institutions on the money supply
C) The impact of government regulations on the money supply
D) The factors influencing the amount of money individuals choose to hold

Answer 1

The main concern in the study of the demand for money is the factors influencing the amount of money individuals choose to hold.

Step-by-step explanation:

The main concern in the study of the demand for money is the factors influencing the amount of money individuals choose to hold. This includes their preferences, income level, level of interest rates, and expectations about future economic conditions. It is important to study the demand for money because it helps in understanding how changes in monetary policy and macroeconomic conditions can affect the overall economy.