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WAEC Economics 2018 Question 34

Question 34

Money and Inflation

Holding money to take care of contingencies is

  1. A.a speculative motive.
  2. B.a transactions motive.
  3. C.a precautionary motive.
  4. D.an expansionary motive.
Show the answer and explanation

Answer: C (a precautionary motive.)

Explanation

Money kept for emergencies is the precautionary motive.