Multiple choice

Which of the following is/are motive(s) of holding cash?

  1. Transaction motive only

  2. Precautionary motive only

  3. Speculative motive only

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As explained earlier cash is needed for transaction, precautionary and speculative motive. Hence, cash is needed for all of these motives.

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