Match the following monetary concepts with their definitions:

LIST-I LIST-II
A. Money Multiplier I. The relationship between the money supply and reserves in a fractional reserve banking system.
B. Quantity Theory of Money II. A theory that asserts that changes in the money supply directly lead to proportional changes in the price level.
C. Liquidity Preference Theory III. A theory proposed by Keynes, which suggests that interest rates are determined by the demand for and supply of money.
D. Open Market Operations (OMO) IV. The buying and selling of government securities by a central bank to regulate the money supply.

1

A - I, B - II, C - III, D - IV

2
A - IV, B - III, C - II, D - I
3
A - II, B - III, C - IV, D - I
4
A - III, B - I, C - IV, D - II

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