The sum of currency and reserves of depository institutions represents the
A) reserves of the Fed.
B) assets of the Fed.
C) monetary base.
D) vault cash.

Question

Quizplus · Accepted Answer

The sum of currency in circulation and reserves of depository institutions constitutes the monetary base, also known as the base money. This includes physical currency and the reserves held by banks at the central bank.

The Sum of Currency and Reserves of Depository Institutions Represents