Monetary Economics/The Demand for Money

The demand for money is a derived one. Money is derived not for itself but because of the wealth it will create after exchange (just as it use as medium of exchange). The demand for money is highly dependable on the mindset or motive of people for keeping money. Motive for holding or demanding for money as stated by lord Maynard Keynes is as follows: Precautionary motive Speculative motive Finally transactionary motive