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Identify the motive of holding money in each of the circumstances below:- (a) Need to hold money to cater for future unforeseen eventualities (b) Need to have...

Identify the motive of holding money in each of the circumstances below:-
(a) Need to hold money to cater for future unforeseen eventualities
(b) Need to have money to cater for daily expenses
(c) Need to have money with hope that prices will fall in future in order to purchase more

Answers

(a) Need to hold money to cater for future unforeseen eventualities
- Precautionary motive
(b) Need to have money to cater for daily expenses
- Transaction motive
(c) Need to have money with hope that prices will fall in future in order to purchase more
- Speculative motive

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Kavungya answered the question on April 4, 2019 at 05:33

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