Which of the following is NOT a part of the monetary base?
A) Chemical Bank's deposits of reserves at the Fed
B) First Bank's required reserves held at the Federal Reserve
C) currency
D) U.S. government securities owned by the Fed

Question

Quizplus · Accepted Answer

The monetary base consists of reserves held by banks at the Fed (including required reserves like in B) and currency in circulation (as mentioned in C). It does not include U.S. government securities owned by the Fed, as these are assets of the Fed but not part of the physical currency or reserves that make up the monetary base.

Which of the Following Is NOT a Part of the Monetary