Ask Question
15 April, 08:46

The precautionary demand for money is the demand for money: a. to cover unexpected events. b. for normal transactions purposes. c. to protect against inflation. d. for normal investment purposes. e. for special stock purchases.

+4
Answers (1)
  1. 15 April, 10:05
    0
    a. to cover unexpected events.

    Explanation:

    One of the reasons why someone would want to hold cash in his/her portfolio is for precautionary purposes. It is where "emergency" fund was derived. The motive for holding such a cash is to cover unexpected events or expenses like a blocked drainage, car breakdown or unexpected medical emergency. Other motives for demanding cash is to cover normal transactions or to use during speculated events like recessions.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The precautionary demand for money is the demand for money: a. to cover unexpected events. b. for normal transactions purposes. c. to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers