When a person puts a $20 bill in the glove compartment of their car in case of an emergency, this is an example of?

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01-08-2017
Social Studies

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When a person puts a $20 bill in the glove compartment of their car in case of an emergency, this is an example of?

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Greenleafable Greenleafable · Answer 1 · 2017-08-07T12:11:51+02:00

Greenleafable Greenleafable

07-08-2017

This is an example of the precautionary demand for money.
Precaution means that you prepare yourself in advance for something 'bad' that may happen in the future. If you put a $20 bill in the glove compartment of your car, it means that you are saving that extra cash in case you need it for an emergency, to make sure you are covered.

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