Mr. A, who is self-employed decided to keep more money in his savings account, considering the prevailing economic & political conditions. What…

CA Foundation · Business Economics · MTP · September 2024
Mr. A, who is self-employed decided to keep more money in his savings account, considering the prevailing economic & political conditions. What is the motive for such a move by A?
(A) A. Transactions Motive
(B) B. Speculative Motive
(C) C. Precautionary Motive
(D) D. Conservative Motive

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Precautionary Motive

Topics: Money Market

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