Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid form instead of in some form of investment. the motive which relates to making provision for the ‘rainy day’ is known as?
a
speculative motive
b
precautionary motive
c
transactions motive
d
investment motives
e
rainy day motive
Explanation
Correct Option
bNo explanation available
Video Explanation
No video available
Post your Contribution
Share:
Discussions (2)
Pablojay
5 years ago
John keyness gave three motives of demand for money.
(1) Transactionary motive
(2)precautionary motive
(3)Speculative motive
(1) Transactionary motive:This is a situation whereby people desire to hold money for every day transaction.
(2)The precautionary motive: is a desire on the part of the people or buisness to hold money so as to take care of unforseen circumstances (eg) unexpected event.
(3)Speculative motive:This is a form of money that creditors are compelled to accept as a medium of exchange.
