Precautionary motive for holding money is to?

A. meet daily and regular transactions
B. take advantage of changes in the prices of goods and services
C. cover unforeseen events
D. cover expenses on house rent

Correct Answer: Option C

C. cover unforeseen events

Explanation

Precautionary motive:- A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay.