Laurie's Ice Rink keeps an extra $1,500 in its checking account simply in case an emergency arises. Which type of motive for holding cash does this represent

Precautionary Motive

Explanation:

there are three motives for Holding Money . They are :

1. Transaction Motive:  the motive for holding money is to be able to carry out transactions such as to pay for goods or services.

2. Precautionary Motive: the motive for holding money is to meet unforeseen circumstances or emergencies. e.g. if my car suddenly develops a fault.

3. Asset or Speculative Motive: the motive for holding money is to take advantage of the rise and fall of prices of bonds and securities.

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy