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Which of the following is a motive for holding money?

Economics
NECO 2003

Which of the following is a motive for holding money?
  • A. celebration
  • B. daily purchases
  • C. election campaign
  • D. payment of taxes
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Correct Answer: Option B
Explanation
In his publication on The General Theory of Employment, Interest, & Money, Keynes outlined three reasons, or motives, for holding money or cash: Transaction Motive: to pay for goods or services. It is useful for conducting everyday transactions or purchases. Precautionary Motive: it's a relatively safe investment.

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