The transaction motive for holding money implies that money is held to:

CA Foundation · Business Economics · MTP · April 2025
The transaction motive for holding money implies that money is held to:
(A) A. Make speculative investments in financial markets
(B) B. Provide liquidity for daily transactions and purchases
(C) C. Protect wealth against inflationary risks
(D) D. Save for future investment in assets

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Provide liquidity for daily transactions and purchases

Topics: Money Market

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