Match the columns
| Column A (Money Demand Theories) | Column B (Key Features/Concepts) |
|---|---|
| 1. Keynesian Theory | A. Emphasizes transactions and precautionary motives for holding money. |
| 2. Friedman’s Quantity Theory | B. Money demand is influenced by interest rates and the opportunity cost of holding money. |
| 3. Baumol-Tobin Model | C. Argues that the demand for money is a function of wealth and income. |
| 4. Liquidity Preference Theory | D. Focuses on the trade-off between holding money and investing in interest-bearing assets. |
1
1 → A, 2 → C, 3 → D, 4 → B
2
1 → C, 2 → B, 3 → A, 4 → D
3
1 → D, 2 → A, 3 → C, 4 → B
4
1 → B, 2 → D, 3 → A, 4 → C