The transaction motive relates to the demand for money to meet day-to-day transactions.
According to Keynes, "Transaction demand for money is positively associated with the level of income, as higher the level of Income, larger would be the size of money holdings for transactions. The relationship between the value of transactions and transaction demand is
\\(\\begin{aligned} M_{T}^{d} &=K T \\\\ \\frac{1}{K} M_{T}^{d} &=T \\\\ V M_{T}^{d} &=T \\\\ V &=\\frac{1}{K}, \ ext { represents velocity of circulation of money. } \\end{aligned}\\)
\\(\\begin{aligned} \ ext { Here, } T &=\ ext { Total value of transactions of money. } \\\\ K &=\ ext { Positive fractions } \\\\ M_{T}^{d} &=\ ext { Stock of money hold by people } \\end{aligned}\\)