The monetary base consists of
A) gold and Reserve Bank notes.
B) Australian dollar securities and foreign exchange.
C) Australian dollar reserves and banks' reserve deposits.
D) Reserve Bank notes and banks' reserve deposits.
E) gold and foreign exchange.

Question

Quizplus · Accepted Answer

The monetary base, also known as the money base or high-powered money, consists of physical money (such as coins and currency) held by the public and reserves held by banks at the central bank. This includes Reserve Bank notes and banks' reserve deposits.

The Monetary Base Consists of