Concept:Holding money to handle contingencies is known as the precautionary motive.
Explanation:Contingencies are unexpected events such as accidents, sudden illness, or emergencies.
People keep cash reserves to meet such unforeseen situations.
These reserves are held for safety and do not depend on planned transactions or investment speculation.
This is different from the transactions motive, which covers everyday payments, and the speculative motive, which involves waiting for better investment opportunities.
The precautionary motive ensures financial readiness for unplanned needs.
Answer:The correct option is C. a precautionary motive.