My Cart
Your Cart 0

    Your cart is empty.

  • Total (Amount) ₹0.00
Economics

Money demand by transaction theory (Baumol-Tobin) Calculator

Economics

CAT & MBA Verified formulaSI defaultsCompatible units
Scan another formula
Help us keep answers accurate

Report a formula or result issue

Tell us what looks wrong and, if possible, include the expected answer, unit or calculation step. Our content team will review it.

Money demand by transaction theory (Baumol-Tobin)

Equation and meaning

\[Average_{money\_holdings} = \frac{Y}{2 \cdot N}\]

Average money holdings where Y is total spending over a year, i is the interest rate on savings account, N is the the number of trips consumer makes to the bank to withdraw money from the savings account, and F is the cost of a trip to the bank.

Variables in this formula

Average_money_holdings — Average Money Holdings
Enter this value unless it is the selected unknown.
N — N
Enter this value unless it is the selected unknown.
Y — Y
Enter this value unless it is the selected unknown.

How to use this calculator

  1. Leave one value emptyThe empty field is automatically treated as the unknown.
  2. Enter known values and unitsChoose N, kgf, dyn, SI or another compatible unit when available.
  3. Review the automatic answerThe result appears immediately and is substituted back into the formula to check the residual.
Keep learning
View Economics formulas
Economics

Marginal productivity of capital

Economics

\[MPK = \alpha \cdot \frac{Y}{K}\]
Open calculator Finance

Activity Ratios

Finance

\[Receivables_Turnover = ( ( ( Net_annual_sales ) ) / ( ( Average_receivables ) ) )\]
Open calculator Finance

Bond Equivalent yield for annual pay Bond

Finance

\[Bond_{equivalent\_yield} = \left({\left(1 + effective_{annual\_yield}\right)}^{\frac{1}{2}} - 1\right) \cdot 2\]
Open calculator Finance

Coefficient of Variation

Finance

\[Coefficient_of_Variation_CV = ( ( ( Standard_deviation_of_x ) ) / ( ( Average_value_of_x ) ) )\]
Open calculator Finance

Compounded Returns

Finance

\[R = ( 1 + ( R_1 ) ) \cdot ( 1 + ( R_2 ) ) \cdot ( 1 + ( R_3 ) )\]
Open calculator Finance

Consumer Index

Finance

\[CPI = ( ( ( ( ( Cost_of_basket_at_current_prices ) ) / ( ( Cost_of_basket_at_base_period_prices ) ) ) ) ) \cdot 100\]
Open calculator