Holding money to take care of contigencies is - WAEC Economics 2018 Question
Holding money to take care of contigencies is?
A
a speculative motive
B
a transaction motive
C
a precautionary motive
D
an expansionary motive
correct option: c
Precautionary Motive. A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay.
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