According to Marshall and Fisher, what are the components of the demand for money?

Transactions demand refers to the demand for money that arises due to the need for cash to carry out day-to-day transactions. People need money to buy goods and services, and this type of demand arises from the necessity to hold money for meeting daily expenses. The transactions demand for money is usually influenced by factors such as the level of income, the price level, and the modes of payment available.

Precautionary demand is the demand for money that arises due to the need for a contingency fund or as a safety measure in case of unexpected expenses or emergencies. This demand is associated with uncertainty in various life situations like health issues, job loss, or repairs required for a house or car. The level of precautionary demand for money depends on factors like the individual or household's degree of risk aversion, their income and wealth, and their access to alternative financial safety nets, such as credit cards, loans, or insurance.

Speculative demand is the demand for money that arises from the desire to take advantage of potential financial opportunities. Individuals and investors may hold cash to invest in assets such as stocks or bonds when they believe prices will fall, or to buy assets when they expect prices to rise. The speculative demand for money is influenced by factors such as interest rates, expectations about future price movements, and the availability of alternative investment opportunities. In conclusion, the three main components of the demand for money according to Marshall and Fisher are transactions demand, precautionary demand, and speculative demand. These components help in understanding how individuals and households make decisions regarding the amount of money they hold for different purposes.