Question

Some colleges charge for student parking. Currently, your college does not charge for parking but the administration announced a possible charge of $2 per day. You are not sure when the new parking policy will start; therefore you decide to keep a $5 bill in your wallet. You hold to $5 for the:

O money creation motive.
O precautionary motive.
O speculative motive.
O impulsive motive.

Answer 1

The correct answer is letter "B": precautionary motive.

Step-by-step explanation:

A precautionary motive is a preventive act of carrying or saving extra money to successfully face an unexpected event. This may lead to people accruing funds in a bank savings account or purchasing securities or assets profitable enough to cover financial hardship.