Which of the Following Correctly Describes the Precautionary Motive for Holding

question 22

Multiple Choice

Which of the following correctly describes the precautionary motive for holding money?

• A) It reflects the fact that money payments and money receipts are not perfectly synchronized.
• B) It reflects the need to hold money in order to diversify risk.
• C) It reflects the need to hold money to pay for daily transactions.
• D) It reflects the need to hold money due to uncertainty.

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Definitions:

Common Goal

A shared objective or aim pursued by individuals within a group or organization.

Ethical Leadership Principle

A guideline for leadership behavior that emphasizes honesty, integrity, fairness, and respect in decision-making and interactions.

Toxic Triangle

A framework that describes the confluence of destructive leaders, susceptible followers, and conducive environments that foster toxic leadership.

Destructive Leaders

Leaders who have a deleterious effect on their followers, organizations, or both, usually through toxic, unethical, or incompetent practices.