Question:medium

Sequence the evolution of money demand theories oldest to latest: A. Friedman's Restatement of quantity theory, B. Inventory theory of transactions demand, C. Cambridge Cash Balance approach, D. Liquidity Preference theory, E. Portfolio Balance Model.

Show Hint

Money demand theory moves from Cambridge cash balance to Keynesian liquidity preference and then to modern portfolio and Friedman approaches.

Updated On: May 22, 2026

B, A, C, E, D
A, B, C, D, E
D, C, A, B, E
C, D, B, E, A

Show Solution

The Correct Option is D

Solution and Explanation

Was this answer helpful?

0

Top Questions on Money and Inflation

Questions Asked in CUET (PG) exam

A trade-off is:

CUET (PG) - 2024
Trade-offs

If a Production Function is given as Q(x,y) = Axay, where (a + b) = 2, the function is said to display:

CUET (PG) - 2024
Production Theory

In an oligopolistic market, firm i and firm j have constant marginal cost = c for an identical good. They compete to set prices Pi and Pj. The demand for total market demand Q, where if \(P_i > P_j\), the demand for firm i is 0. If \(P_i < P_j\), the demand for firm i is Q. If \(P_₁ = P_j\), then they share the market equally and hence the demand for firm i is \(\frac{Q}{2}\). In equilibrium, the prices of firms i and j are:

CUET (PG) - 2024
Oligopoly

If Y = F(L,K) is a linear homogeneous production function, then multiplying all inputs by a constant factor α = 2 results in output increasing by a factor of:

CUET (PG) - 2024
Production Function

In the table below, firm 1 and firm 2 can cooperate to share market profits or compete with each other. The figures in the cells represent the profits in crores of INR. They can either cooperate with each other where they share INR 10 crores equally. Alternatively, they can compete, which lowers the market output to INR 4 crores, which they share equally. If one of the firms competes while the other cooperates, the former obtains INR 10 crore of profit while the other makes zero profit. In equilibrium, firm A and firm B should respectively:

Firm 2	Cooperate	Compete
Firm 1	5, 5	0, 10
Compete	10,0	2, 2

CUET (PG) - 2024
Game theory