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WAEC Economics 2025 Objective — Question 38

Question 38 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.

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A factor that positively influences the precautionary motive for holding money is

  • A. a high rate of interest.
  • B. convenient system of payment.
  • C. short interval between paydays.
  • D. high degree of uncertainty.Correct

Explanation

People hold more money for precautionary purposes when there is greater uncertainty about the future.

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