The Monetarist Analysis Is Based on the Theory of Portfolio

Multiple Choice

The Monetarist analysis is based on the theory of portfolio balance. This states that

A) in times of recession individuals will use up their savings rather than cutting down on excess spending.
B) individuals will keep an equal balance between financial assets and money in their portfolios, irrespective of the rate of interest.
C) people hold their wealth in a number of different forms, the balance depending on their relative profitability and liquidity.
D) individuals with stocks and shares spread their risks by having a broadly balanced portfolio of equities.