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    Exam 5: Understanding Interest Rates, Savings, and the Wealth Effect
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    The Motive for Holding Money as a Reserve for Future
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The Motive for Holding Money as a Reserve for Future

Question 65

Question 65

Multiple Choice

The motive for holding money as a reserve for future emergencies and to cover extraordinary expenses is referred to as the:


A) Transactions motive
B) Precautionary motive
C) Speculative motive
D) Liquidity motive
E) None of the above

Correct Answer:

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