― Demand for money - DefinitionThe demand for money within a specified area at a given time is merely the sum of individual demand for money to hold. Peoples demand money because it serves as a medium of exchange or means of payments. Science money is commonly used for making transactions, a major element in the demand to hold money is a transactions demand. Another important function of money is to serve as a store of value. ∙ Human demand money for the following reasons: ∙ 1. To [...].