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The motive for holding money to meet unforeseen events is termed

Economics
WAEC 2019

The motive for holding money to meet unforeseen events is termed

  • A. precautionary demand
  • B. transactions demand
  • C. liquidity demand
  • D. speculative demand
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Correct Answer: Option A
Explanation

The precautionary demand for money is the act of holding money to cater to unforeseen circumstances.

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