The monetary base is composed of reserves and currency.

Name: The monetary base is composed of reserves and currency.
Brand: Quizplus
Rating: 4.9 (60 reviews)

Question

Quizplus · Accepted Answer

The monetary base, also known as the money base, is the total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves. This means it is composed of two main elements: reserves (held by banks) and currency (in circulation with the public).

The Monetary Base Is Composed of Reserves and Currency