Principles of Macroeconomics/Monetary Policy and International Trade/Money market

7.5 The money market
Graphical representations of money markets are visualizations of a combination of an economy's transactional demands plus an economy's asset demands. By way of introduction to this subunit, individuals and organizations face choices regarding what they can do with their money. In terms of spending as it relates to what is known as the money market, individuals and organizations can buy stocks, bonds, imports, foreign currencies, goods and services, and so forth.

One interpretation of the money demand curve is based on an economy's interest rate. This interpretation rests on the position of the supply of money and the interest rates on money. Regarding shifting factors, the money supply can increase based on lower interest rates or decrease based on higher interest rates.