Home > Terms > English, UK (UE) > Precautionary motive
Precautionary motive
Keeping some money handy, just in case. One of three motives for holding money identified by Keynes, along with the transactional motive (having the cash to pay for planned purchases) and the speculative motive (you think asset prices are going to fall, so you sell your assets for cash).
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- Part of Speech: noun
- Synonym(s):
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- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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