Which one of the following is the need to hold cash simply as a financial reserve?
A)activity motive
B)speculative motive
C)precautionary motive
D)opportunistic motive
E)transaction motive

Question

Quizplus · Accepted Answer

The precautionary motive is the need to hold cash as a financial reserve to guard against unexpected events or emergencies. This differs from the other motives listed, which involve holding cash for specific transactions, investments, or opportunities.

Which One of the Following Is the Need to Hold