The motive behind holding cash for events such as a major storm causing uninsured damage is called the _____ motive.

Question

Quizplus · Accepted Answer

The precautionary motive for holding cash refers to keeping cash on hand to cover unexpected events or emergencies, such as a major storm causing uninsured damage. This ensures that an individual or business can manage unforeseen expenses without having to liquidate assets under unfavorable conditions.

The Motive Behind Holding Cash for Events Such as a Major