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Money Demand and Money Market  Equilibrium

Securities & MarketsSeptember 12, 2010 · 1 min read

This video provide an overview of the concept of money demand and money market instruments.

This video develops a graphical model of the money market. Money demand is a positive function of nominal income and a negative function of the interest rate. Money supply is determined by the central bank. In equilibrium, money demand and supply must be equal.

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