4-1:The Demand for Money Assume that you the choice between only two financial assets OMoney, which can be used for transactions, but pays zero interest. In reality, there are two types of money currency, the coins and bills issued by the central bank, and checkable deposits, the bank deposits on which you can write checKs OBonds, which cannot be used for transactions, but pay a positive interest rate, In reality there are many other assets than money, and in particular many types of bonds each associated with a specific interest rate 2003-6-292003-6-29 2 4-1:The Demand for Money Assume that you the choice between only two financial assets: ●Money , which can be used for transactions, but pays zero interest. In reality, there are two types of money: currency,the coins and bills issued by the central bank, and checkable deposits, the bank deposits on which you can write checks. ●Bonds, which cannot be used for transactions, but pay a positive interest rate,i. In reality there are many other assets than money, and in particular many types of bonds, each associated with a specific interest rate