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Questions › CUET-PG › CUET-PG 2026 › Q46
4 marks, −1Macroeconomics › Demand for money and monetary theories › The quantity theory of money and velocityHardabout 1 min

CUET-PG 2026 Question 46: Demand for money and monetary theories

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.

Choose the correct answer from the options given below:

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Answer and worked solution

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Demand for money and monetary theories has come up 82 times in 7 exams since 2005.

What this question tests

This question is on The quantity theory of money and velocity, part of Demand for money and monetary theories in Macroeconomics.

The link between the money stock, prices and output through velocity.

TestStop has 30 past-paper questions on this subtopic; the nearest in year are below.

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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.