Which of the following is an example of a reserve aggregate closely watched by the Federal Reserve?

Question

Quizplus · Accepted Answer

The monetary base is an example of a reserve aggregate closely watched by the Federal Reserve. It reflects the total amount of currency in circulation and reserves held by banks at the central bank. The Federal Reserve uses changes in the monetary base as a tool for implementing monetary policy.

B, C, and D are not typically considered reserve aggregates closely monitored by the Federal Reserve. While currency held by the public and vault cash are important components of the monetary base, they are not monitored in isolation. Total non-financial debt is not a reserve aggregate and is not directly related to the Federal Reserve's monetary policy.

Which of the Following Is an Example of a Reserve