The monetary base (MB)refers to:
A) currency.
B) currency plus total reserves held at the Fed.
C) currency plus checkable deposits.
D) currency,savings deposits,money market mutual funds,and small time deposits.

Question

Quizplus · Accepted Answer

The monetary base (MB) is defined as the sum of currency in circulation and total reserves held by depository institutions at the Federal Reserve. Choice A (currency) is only one component of the MB while C (currency plus checkable deposits) and D (currency, savings deposits, money market mutual funds, and small time deposits) include additional components which are not part of the MB.

The Monetary Base (MB)refers To