Going on vacation would be a good example of transaction demand for money, since you need to purchase plane tickets in order to get to your location. Another example would be going out to dinner or other forms of entertainment while on vacation. Asset demand for money could be paying for a vehicle or saving enough money in order to be able to purchase a home. You can also tie this example into interest rates, since depending on what interest rate you qualify for when purchasing an item as large as a home , it will be the determining factor for the amount you will pay towards the loan given to you buy the bank or loan agency. The higher the interest rate the higher your payment, also the bigger the over all bill will be. The Fed has the ability to print more or less money, giving this agency the power to heavily influence the over all economy, currently the change in the supply of money has effected the general population in the country by making people pay more for the same items, they once purchased for a lesser price.