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Precautionary motive |
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Precautionary motive A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay. Precautionary motive The desire to keep extra money in case an unforeseen situation requires a capital outlay. For example, one may wish to save extra money to pay for medical bills in case of an accident. According to John Maynard Keynes, people keep savings accounts, as well as some stocks and commodities, with a precautionary motive in order to cover unexpected events. See also: Precautionary demand (for money). How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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