The motives for holding money are :

(A) Transaction

(B) Speculative

(C) Precautionary

(D) Credit creation

(E) Lending

Choose the correct answer from the options given below :

(A), (B) and (C) Only

The correct answer is option (4) : (A), (B) and (C) Only

The primary motives for holding money are as follows:

1. Transaction Motive (A): People hold money to carry out everyday transactions, such as buying goods and services.
2. Speculative Motive (B): People hold money to take advantage of future investment opportunities or to avoid potential losses from other investments.
3. Precautionary Motive (C): People hold money to cover unexpected expenses or emergencies.

The other options:

4. Credit Creation (D): This is not a motive for holding money but rather a process conducted by banks through lending.
5. Lending (E): This is an action taken with money, not a motive for holding it.