Concept:Money is held by people for different motives.
One motive is to be ready for sudden or unexpected needs.
Explanation:A person cannot always predict future expenses or emergencies.
Therefore, they keep some money aside for such unexpected situations.
This motive is called precautionary demand for money.
The other motives are transactions demand and speculative demand.
Transactions demand is for daily purchases.
Speculative demand is for taking advantage of future price changes.
Thus, holding money to meet unforeseen events matches the precautionary motive.
Answer:A. Precautionary demand