The three reasons that people choose to hold money are to conduct transactions, for unforeseen circumstances and for speculative purposes.

Question

Quizplus · Accepted Answer

These are indeed the three primary motives for holding money as identified in economic theory: the transactions motive (for daily expenses), the precautionary motive (for unexpected needs), and the speculative motive (to take advantage of future opportunities).

The Three Reasons That People Choose to Hold Money Are