Economics · Working Capital Management
Although cash needs to be invested to earn returns, businesses need to keep a certain amount readily available. Which of the following pair represents the primary motives for holding cash as described by John Maynard Keynes?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Precautionary motive and Movement motive
- 2Transactions motive and Precautionary motive✓
- 3Transactions motive and Asset motive
- 4Movement motive and Asset motive
Correct answer
Transactions motive and Precautionary motive
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