John Maynard Keynes segmented a firm's demand for cash into the following motives:
A) risk, investment, and liquidity.
B) transaction, speculative and precautionary.
C) transaction, liquidity, and speculative.
D) transaction, speculative, and risky.

Question

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John Maynard Keynes identified three motives for a firm's demand for cash: transaction, speculative, and precautionary. These motives explain why individuals and businesses hold cash beyond the immediate need for transactions.

John Maynard Keynes Segmented a Firm's Demand for Cash into the Following