The monetary base consists of
A) the quantity of money.
B) the sum of Federal Reserve notes, coins, and depository institutions' deposits at the Fed.
C) government securities held by the Fed.
D) demand deposits and vault cash.

Question

Quizplus · Accepted Answer

The monetary base, also known as high-powered money, is the sum of Federal Reserve notes, coins and depository institutions' deposits at the Fed. It does not include government securities held by the Fed or demand deposits and vault cash.

The Monetary Base Consists of