Under Keynes' 'Precautionary Motive' for holding money, why do individuals keep a portion of their income in liquid cash?

Question

Economics · Macroeconomics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

To deal with unexpected emergencies and unforeseen events

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Macroeconomics?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Macroeconomics

Who among the following founded the 'Forward Bloc'?

Which of the following statements regarding the Harappan Civilization is NOT correct?

Which ruler is generally credited with unifying much of Northern India under a single empire for the first time?

Answer 1

To earn regular interest from banks

Answer 2

To make charitable donations and social spendings

Answer 3

To invest in stock markets and financial instruments

Answer 4

To deal with unexpected emergencies and unforeseen events

Related Practice Questions