Please explain the formula and what does it mean by the real demand for money?

so if the interest rate is high it is plausible that people will be less willing to hold money. This means that money will circulate at a faster rate, so the velocity of money is an increasing function of the interest rate: v = va). Then we can rewrite the equation M V = PY as 5% Here, we can think of the righthand side as the real demand for money that is, the amount of money that households, rms, and banks want to have to carry out their transactions. The equation says that the available supply of money, measured in real terms, must be equal to the demand for money. We see that demand for money increases with a higher level of production and decreases if the interest rate increases.' The interest rate is the opportunity cost of holding money so if the interest rate increases, demand for money will decrease