DEMAND FOR MONEY AND IT’S SCARCITY

DEMAND FOR MONEY

Definition: The demand for money is the total  amount of money which all individuals in the economy wish, for various reasons, to hold.

 In other words, the demand for money refers to the desire to hold money; that is, keep one’s  resources in liquid form rather than spending it. The demand for money in economics is known liquidity preference.

MONEY: DEMAND FOR AND SUPPLY OF MONEY

  • Identify the various motives for holding wealth in the form of money
  • Explain the elementary quantity theory of money
  • Identify the determinants of the supply of money

Explain how changes in the price level affect the purchasing power of money

REASONS OR MOTIVES FOR HOLDING MONEY WHEN THE DEMAND IS THERE

Lord Keynes postulated that there are three motives or reasons responsible for the demand money or to hold money.

 These are:

  • Transactional motives: People desire to keep or hold money for day to day transactions or current expenditures. Household needs to hold money in order to cater for the interval between the receipt of incomes and their expenditures.

  • Precautionary motives: This when people demand for money in order meet up with unforeseen circumstance.oes or unexpected expenditures. These may include sickness, unexpected visitors, etc. Due to uncertainties in life, people keep money against future emergencies that may require monetary expenditures.

meaning of economics

  • Speculative motives: This motive is specifically a business motive and refers to the desire to hold cash balance in order to embark on speculative dealings in the bond market. The demand to hold money for specific purpose is elastic.
  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  18. shares
  19. how companies raises funds for expansion
  20.  

capital

WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
2. DISEASES
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
6. HUMUS
7. COMPOST
8. CROP ROTATION
9. GRAZING AND OVER GRAZING
10. IRRIGATION AND DRAINAGE
11. IRRIGATION SYSTEMS
12. ORGANIC MANURING
13. FARM YARD MANURE
14. HUMUS
15. COMPOST
16. CROP ROTATION

  1. IRRIGATION AND DRAINAGE
    19. IRRIGATION SYSTEMS
    20. INCUBATORS
    21. MILKING MACHINE
    22. SIMPLE FARM TOOLS
    23. AGRICULTURAL MECHANIZATION
    24. THE CONCEPT OF MECHANIZATION
    25. PROBLEMS OF MECHANIZATION
    26. SURVEYING AND PLANNING OF FARMSTEAD
    27. IMPORTANCE OF FARM SURVEY
    28. SURVEY EQUIPMENT
    29. PRINCIPLES OF FARM OUTLAY
    30. SUMMARY OF FARM SURVEYING
    31. CROP HUSBANDRY PRACTICES
    32. PESTS AND DISEASE OF MAIZE- ZEA MAYS
    33. CULTIVATION OF MAIZE CROP
    34. OIL PALM
    35. USES OF PALM OIL
    36. MAINTENANCE OF PALM PLANTATION
    37. COCOA
  2.  


38.
39. PROCESSES IN COCOA CULTIVATION
HOLING AND LINING
40. YAM
41. LAND PREPARATION FOR YAM
42. DEPT OF PLANTING
43. SPACING OF YAM
44. PLANTING DEPT OF YAM
45. STORAGE OF YAM
46. STAKING OF YAM
47. HARVESTING OF YAM
48. COWPEA
JUTE
49. FORAGE CROP AND PASTURE
50. FORAGE GRASSES
51. SILAGE
52. PASTURE
53. TYPES OF PASTURE
COMMON GRASSES AND LEGUMES
54. GRASSES
55. LEGUMES
56. ESTABLISHMENT OF PASTURES
57. 201. FORAGE PRESERVATION
58. HAY SILAGE
59. FORESTRY IMPORTANCE OF FORESTRY 206. FOREST MANAGEMENT FOREST REGULATION DEFORESTATION AFFORESTATION
60. DISEASES AND PESTS OF CROPS
61. MAIZE SMUT
62. RICE BLAST
63. MAIZE RUST
64. LEAF SPOT OF GROUNDNUT
65. COW-PEA MOSAIC
66. COCOA BLACK POD DISEASE

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