Answer:
Precautionary Motive
Explanation:
there are three motives for Holding Money . They are :
1. Transaction Motive: the motive for holding money is to be able to carry out transactions such as to pay for goods or services.
2. Precautionary Motive: the motive for holding money is to meet unforeseen circumstances or emergencies. e.g. if my car suddenly develops a fault.
3. Asset or Speculative Motive: the motive for holding money is to take advantage of the rise and fall of prices of bonds and securities.
