The Fed’s Primary Task - Demand for Money

3 important questions on The Fed’s Primary Task - Demand for Money

What is another term for 'demand for money'?

The term is also known as liquidity preference.

What does 'demand for money' reflect?

It reflects how much wealth people prefer to hold in money.

What type of assets do people prefer to hold in 'demand for money'?

People prefer to hold it in the form of liquid assets.

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