The transaction demand for money is most clearly related to its use as a

A) medium of exchange.
B) standard of value.
C) measure of value.
D) store of value.
E) standard of deferred payment.

Transaction Demand

The requirement to possess currency in order to carry out daily financial transactions.

Medium of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Measure of Value

A function of a medium of exchange that allows it to serve as a common denominator to express the value of goods and services.