PRC-3 · Chapter 17 · Question 16 of 20
A family keeps Rs. 50,000 locked in a safe specifically in case a sudden medical emergency occurs. According to Keynes, this cash is held due to the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Precautionary motive
Explanation
The precautionary motive is holding money to protect against sudden, unforeseen expenses and emergencies.
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