Transaction deposits are part of the money supply but not part of the monetary base.

Name: Transaction deposits are part of the money supply but not part of the monetary base.
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Question

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Transaction deposits are included in the money supply measures (such as M1 and M2) because they can be used directly for transactions, but they are not part of the monetary base. The monetary base consists of currency in circulation and reserves held at the central bank, not deposits held by the public at commercial banks.

Transaction Deposits Are Part of the Money Supply but Not