When the US Treasury decides to reduce the value of the US dollar relative to the British pound, there will be a decline in the monetary base in the United States.

Question

Quizplus · Accepted Answer

The monetary base in the United States is primarily influenced by domestic monetary policy actions such as open market operations, not by changes in the exchange rate. Reducing the value of the US dollar relative to the British pound is more directly related to foreign exchange markets and does not inherently cause a decline in the US monetary base.

When the US Treasury Decides to Reduce the Value of the US