The quantity of money demanded refers to the amount of money that individuals and businesses are willing to hold in the form of cash or deposits at a given time, at a specific interest rate.
Related terms
Money supply: The total amount of money available in an economy at a given time.
Liquidity preference: The desire of individuals to hold liquid assets (like cash) rather than non-liquid assets (like stocks or real estate).
Income level: The amount of income earned by individuals and businesses, which affects their demand for money.