Transaction demand is the currency held based on income motivation, business motivation, and prudence motivation. Simply put, transaction demand is the currency held to satisfy transaction needs. It can be calculated like this: 1) Total money demand function L=0.20Y+2000-500r; (2) 10000*0.22000-500*6=100 billion yuan; (3) L1=120 billion yuan can satisfy the speculative nature The money demand is 2500-1200=130 billion yuan; (4) Ms=L, 2500=10000*0.22000-500*r, r=3 can be found. So we know that the equilibrium interest rate in the money market is 3%.

When people hold currency for transactions, there will be a transaction demand for currency. The transaction demand for money arises from the inconsistency in the time when income and expenditure occur. If the amount of someone's income at a certain moment is exactly equal to the amount he spends at the same moment, there is no need for him to retain currency for transaction purposes. Therefore, transaction demand depends first of all on the time interval between income and expenditure: the longer the time interval, the greater the transaction demand and vice versa. If it is assumed that the time interval between receipts and expenditures is fixed, then transaction demand depends on the size of the number of transactions: it increases nearly proportionally with the number of transactions.

From a long-term perspective, the number of transactions is the main factor affecting transaction demand. This is because, with the development of society and the improvement of productivity, the entire society produces more and more products, especially the social division of labor becomes more and more refined. More products need to be traded before they can enter the consumption field. Therefore, those involved in the transaction Products will also increase accordingly. On the other hand, although the total transaction volume includes transactions of various intermediate products and other activities, it usually maintains a fairly stable proportional relationship with national income. Therefore, for the convenience of analysis, the time interval between income and expenditure and the role of other factors are ignored here, and the role of the number of transactions is mainly considered. At the same time, in the number of transactions, transactions of intermediate products and other activities are ignored, and transactions of final products, that is, national income, are mainly considered. In this way, the most important factor affecting transaction demand is the level of national income. The calculation formula is: L1=L1(Y) where Ll represents the transaction demand for currency. If further assumed, the relationship between transaction demand and income is linear. The vertical axis L1 is transaction demand, and the horizontal axis Y is income. Transaction demand increases with the increase in income, so the transaction demand curve slopes upward to the right; on the other hand, if the income is 0, currency cannot be retained for transaction purposes. Transaction demand is also equal to 0, so the transaction demand curve passes through the origin.