The monetary base is defined as

Question

Quizplus · Accepted Answer

The monetary base refers to the total amount of money that is either in circulation in the economy or held in bank reserves. This includes currency that is in circulation (i.e., outside of banks) and bank reserves, which are funds that banks hold on deposit with the central bank. Therefore, the correct answer is A, as it accurately describes the components of the monetary base. B, C, and D are incorrect, as they do not include all of the necessary components of the monetary base.

The Monetary Base Is Defined as