Question on: JAMB Economics - 2024
Holding money to take care of contingencies is
A
a precautionary motive
B
a transactions motive
C
an expansionary motive
D
a speculative motive
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Correct Option: A
The correct answer is a precautionary motive.
- Precautionary motive: Holding money for unforeseen circumstances or emergencies.
- Transactions motive: Holding money for day-to-day purchases.
- Expansionary motive: Not a standard economic term related to holding money.
- Speculative motive: Holding money to take advantage of future investment opportunities.
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