The Demand for Money Asset Demand for money Money is also an asset However, unlike the other assets, such as bonds, stocks, etc. money M1 does not generate interest rate(its only advantage is the liquid). Therefo it can be expected that when interest rate of other assets increase, the demand for money will declineThe Demand for Money Asset Demand for Money – Money is also an asset. However, unlike the other assets, such as bonds, stocks, etc., money (M1) does not generate interest rate (its only advantage is the liquid). Therefore it can be expected that when interest rate of other assets increase, the demand for money will decline