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Basic Question 3 of 6

The precautionary demand for money refers to the demand to hold money ______

A. to provide a buffer against unforeseen events that might require money.
B. for day-to-day transactions in the near future.
C. to buy financial assets that can potentially yield a high return.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe the roles and objectives of central banks

CFA® 2025 Level I Curriculum, Volume 1, Module 4.