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Which of the following is a motive for holding money?

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Economics NECO 2003

Which of the following is a motive for holding money?

  • celebration
  • daily purchases checkmark
  • election campaign
  • payment of taxes

The correct answer is: 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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