What is the precautionary motive?
A) To take advantage of investment opportunities that can make achievement of our financial goals easier.
B) To provide monies for the down payment or full purchase of longer-lived assets such as durable goods or educational expenditures.
C) To provide monies to even out differences in earnings over time.
D) To provide a fund to cover future uncertainties such as fluctuating income,sickness,inflationary effects on expenditures,etc.
E) To sacrifice today so that your future lifestyle can improve.
Correct Answer:
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Q1: Using cash as much as possible is
Q2: Which of the following is not a
Q3: Debt and marketable securities are examples of:
A)Liquidity
Q5: What is a household budget?
A)An informal budget
Q6: Which of the following is not a
Q7: The ability to turn an asset into
Q8: What is the objective of the household
Q9: Which of the following best describes cash
Q10: Which of the following is not a
Q11: Which of the following is not a
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