The demand for money is described as a

Assessment: WAEC SSCE - Economics - 2013 (Objective) Subject: Economics

Question 1 Report

The demand for money is described as a

Answer Details
The demand for money is described as a derived demand. This means that the demand for money is not for its own sake but for the goods and services that it can be exchanged for. People hold money because they expect to use it to make transactions in the future. Thus, the demand for money is derived from the demand for goods and services. When the demand for goods and services increases, the demand for money also increases as people need more money to buy those goods and services.

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