According to the Quantity Theory of Money

question 37

Multiple Choice

According to the quantity theory of money,

• A) V and Y are not affected by the quantity of money.
• B) V and M are constant.
• C) V and M are not affected by changes in the price level.
• D) V and P are not affected by the quantity of money.

---

Definitions:

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.

Exercise Price

The price at which the holder of an options contract can buy or sell the underlying asset.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn diminishes its price.