The Demand for Money by Individuals nudity The main benefit of holding money comes from its liquidity. Households and firms hold money because it is the easiest way of financing their everyday purchases A rise in the average value of transactions carried out by a household or firm causes its demand for money to rise Copyright C 2003 Pearson Education, Inc Slide 14-10Copyright © 2003 Pearson Education, Inc. Slide 14-10 ▪ Liquidity • The main benefit of holding money comes from its liquidity. – Households and firms hold money because it is the easiest way of financing their everyday purchases. • A rise in the average value of transactions carried out by a household or firm causes its demand for money to rise. The Demand for Money by Individuals