Which of the following is a motive for holding money?
Celebration
Daily purchases
Election campaign
Payment of taxes
Correct answer is B
In his publication on The General Theory of Employment, Interest, & Money, Keynes outlined three reasons, or motives, for holding money or cash: Transaction Motive: to pay for goods or services. It is useful for conducting everyday transactions or purchases. Precautionary Motive: it's a relatively safe investment.