For which of the following is the change in reserves necessarily different from the change in the monetary base?

Question

Quizplus · Accepted Answer

The change in reserves is different from the change in the monetary base in the case of open market purchases from an individual who cashes the cheque (C). When the individual cashes the cheque, the monetary base increases due to the increase in currency in circulation, but there is no change in bank reserves, as the cash does not enter the banking system. In all other options, both reserves and the monetary base change in tandem.

For Which of the Following Is the Change in Reserves