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What are the three main motives articulated by J. M. Keynes for holding cash?
a. Precautionary
b. Return generation
c. Speculative
d. Investment
e. Transaction
Choose the correct answer from the options given below:
Correct Answer: C — a, c, and e only
Explanation:
The correct answer is C: a, c, and e only.
J. M. Keynes identified three main motives for holding cash: (a) Precautionary — to meet unexpected expenses or emergencies; (e) Transaction — for everyday purchases of goods and services; (c) Speculative — to hold cash in anticipation of future investment opportunities when asset prices fall.