Demand for money is a certain amount of money needed by the public to conduct transactions in trade or for a particular purpose.
Demand for money came from third parties, namely:
a. Of the individuals or consumers
b. The employer or the manufacturer
c. The investor or investors
d. The government (can act as producers, consumers, and regulators).
In the analysis of JM Keynes, the people holding money or request money, to fulfill three wishes, namely:
a. Demand for money for transaction purposes, which means money needed to pay for purchases they would do.
b. Demand for money for the purpose of precaution, it means money as a tool to deal with distress that may arise in the future, because every one can not expect to events that may be applicable in the future.
c. Demand money for speculative purposes, meaning that money used for speculation (speculative). Cash is desired to hold this money because the holder can perform speculation on interest rates to come.
Factors that influence the demand for money are:
a. The desire to hold money or motive of holding money.
b. Level of real income, ie income levels actually received by the community and has accounted for inflation element.
c. Higher interest rates low.
d. The existence of an investment or business development that require funds or money.
e. The price level prevailing in the market.
10.18.2011
Definition of money according to economists
Money can be a favorite thing in this day and age. Then what is the meaning of money? There are some economists who define about money, is as follows:
a. Robertson, money is something that is common (widely) accepted for payment of goods.
b. Gaelord Albert Hart, money is the property that the owner can be paid to a number of people immediately and without delay.
c. Rollin G Thomas, money is something that is prepared and accepted by the general public in the payment of the sale of goods, services, and property value as well as for payment of debts.
d. George N Halm, money is a tool to facilitate the exchange and immediately be able to overcome the difficulties of barter.
From the above definition, it can be concluded about the meaning of money, which is a tool to facilitate the exchange, which is generally accepted in the form of purchases of goods or services and for payment of debts.
Exchange tool that can be referred to as money, should have the following requirements:
a. Favored or accepted by the public.
b. Easily stored and transferable.
c. Durable and is not quickly broken.
d. Can be divided and does not reduce its value.
e. Having a stable value or fixed.
f. The numbers make ends meet.
a. Robertson, money is something that is common (widely) accepted for payment of goods.
b. Gaelord Albert Hart, money is the property that the owner can be paid to a number of people immediately and without delay.
c. Rollin G Thomas, money is something that is prepared and accepted by the general public in the payment of the sale of goods, services, and property value as well as for payment of debts.
d. George N Halm, money is a tool to facilitate the exchange and immediately be able to overcome the difficulties of barter.
From the above definition, it can be concluded about the meaning of money, which is a tool to facilitate the exchange, which is generally accepted in the form of purchases of goods or services and for payment of debts.
Exchange tool that can be referred to as money, should have the following requirements:
a. Favored or accepted by the public.
b. Easily stored and transferable.
c. Durable and is not quickly broken.
d. Can be divided and does not reduce its value.
e. Having a stable value or fixed.
f. The numbers make ends meet.
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