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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