What is the principal motive for holding money? Option 1: Transaction motive Option 2: Speculative motive Option 3: Demand for money Option 4: Supply of money

The answer is 'Transaction motive'. View full solution:

CUET Economics - What is the principal motive for holding money? | PYQs + Solutions

CUET Economics 2025 14 May Shift 1

Macro

Medium

Transaction motive

Speculative motive

Demand for money

Supply of money

✅ Correct Option: 1

Related questions:

26 May Shift 2

Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country?

(A) Repurchase agreement.

(B) Moral suasion.

(D) Margin requirements.

Choose the correct answer from the options given below:

28 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Currency + Demand Deposits + Savings deposits with Post Office savings banks	(I) M4
(B) Currency + Demand Deposits + Net time deposits of commercial banks + Total deposits with Post Office	(II) M2
(C) Currency + Demand Deposits	(III) M3
(D) Currency + Demand Deposits + Net time deposits of commercial banks	(IV) M1

Choose the correct answer from the options given below:

29 May Shift 1

Suppose a bank has an initial deposit of ₹200. The required cash reserve ratio is 20%. Then what will be the total money supply in an economy?