The use of money may be necessary several times before a commodity completes its journey from producer to consumer.
Of two persons whose expenditures of money are of the same kind and made at the same rate, the one having the larger amount of purchases to make has the larger monetary demand.

But the amount of purchases does not always vary directly with the amount of real income[2]; for example, a farmer and a village mechanic may have at their disposal incomes equal in the quantities of goods, such as food, fuel, clothing, and house-uses (worth, let us say, $1000 for each), but the farmer would be getting a larger part of his goods directly from his farm and by his own labor, while the mechanic would be getting first a money income to be expended afterward for food, clothing, and rent.
The mechanic would in this case have an average monetary demand much larger than the farmer.
We see thus that a person's monetary demand at any time is that amount of money which rests in his possession as the necessary condition to making his purchases as he desires.

Individual monetary demand varies in proportion directly to the delay, and inversely to the rapidity with which the individual passes the money on; and directly to the amount of the person's income that is received and expended in monetary form.
Sec.6.

#Concept of the community's monetary demand.# The monetary demand of a community at a given time is the sum of the monetary demands of the various individuals and enterprises.

It is that stock of money which is necessarily present to effect the exchanges of the community in the prevailing manner at the existing price level.