Which one of the following is the need to hold cash simply as a financial reserve?
A)Precautionary motive
B)Opportunistic motive
C)Speculative motive
D)Activity motive
E)Transaction motive

Question

Quizplus · Accepted Answer

The need to hold cash as a financial reserve is known as the precautionary motive. This is when an individual or entity holds cash to prepare for unexpected or unforeseen expenses, such as medical bills, home repairs, or car accidents. This allows them to have quick access to funds without needing to sell any existing assets or take on debt at a short notice.

Which One of the Following Is the Need to Hold