WAEC Economics 2019 Objective — Question 35

Question 35 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

The motive for holding money to meet unforeseen events is termed

A. precautionary demandCorrect
B. transactions demand
C. liquidity demand
D. speculative demand

Explanation

The precautionary motive for holding money is the desire to keep money on hand to meet unforeseen contingencies such as sickness, accidents, or emergencies.

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