A. celebration
B. daily purchases
C. election campaign
D. payment of taxes
Correct Answer:
Option B – daily purchases
Explanation
In his publication on The General Theory of Employment, Interest, & Money, Keynes outlined three reasons, or motives, for holding money or cash: Transaction Motive: to pay for goods or services. It is useful for conducting everyday transactions or purchases. Precautionary Motive: it’s a relatively safe investment.
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