Question on: WAEC Economics - 2014

Precautionary motive for holding money is to

A
meet daily and regular transactions
B
take advantage of changes in the prices of goods and services
C
cover unforeseen events
D
cover expenses on house rent
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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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