5.1 List and explain the three different definitions for money in South Africa. These definitions are used to determine the quantity of money (6) 
5.2 The amount that various participants in the economy plans to hold in in the form of money balances is known as the demand for money. 

1)

M1 money supply comprises highly liquid currencies such as coins and notes (that is, cash in circulation outside the monetary sector) as well as domestic private sector checkable and transmission (demand) deposits with monetary institutions.
Thus, the M1 money supply comprises coins and currency in circulation—that is, coins and bank notes that circulate outside the monetary sector. This is because only public funds can be utilized as a source of payment (medium of exchange function of money). The South African Reserve Bank, the Corporation for Public Deposits, the Land Bank, Postbank, private banking institutions, and mutual building societies comprise the monetary sector.
M2 money supply is less liquid in nature and consists of M1 plus any other short- and medium-term deposits with monetary institutions by the domestic private sector (Mohr: 2015). Thus, it is a more inclusive definition of money than M1. Short-term (less than 30 days) and medium-term (30 days to 6 months) notice deposits are not instantly ready to act as money's medium of exchange.

M3 money supply is the largest definition of money supply; it includes M2 as well as all domestic private sector long-term deposits with monetary institutions (Mohr: 2015). Notice deposits with a maturity of more than six months are referred to as long term notice deposits. Because M3 is the most complete measure of a country's aggregate money supply, it covers both "medium of exchange" (liquid) and "store of value" types of money.

2)

Money demand refers to the desire to hold financial assets in the form of cash or bank deposits rather than investments. It can relate to the demand for money defined narrowly as M1 (directly spendable holdings) or to the demand for money defined broadly as M2 or M3.

Money in the M1 meaning is dominated by interest-bearing assets as a store of value (even a transitory one). M1, on the other hand, is required to conduct trades; in other words, it offers liquidity. This results in a trade-off between the liquidity benefit of storing money for near-term expenditure and the interest benefit of holding other assets temporarily. The desire for M1 is a result of this trade-off over how a person's money should be held. In macroeconomics, the transaction motive and the precautionary motive are used to classify reasons for keeping money in the form of M1. The demand for those components of the wider money concept M2 with a non-zero interest rate is determined by asset demand. These can be further classified into more microeconomically based reasons for money keeping.