Vault cash is equal to $2 million,deposits by depository institutions at the central bank are $1 million,the monetary base is $15 million,and bank deposits are $35 million.Currency held by the nonbank public is
A)$3 million.
B)$12 million.
C)$15 million.
D)$20 million.

Question

Quizplus · Accepted Answer

Currency held by the nonbank public can be calculated using the equation:

Currency held by the nonbank public = Monetary base - Vault cash - Deposits by depository institutions

Substituting in the given values:

Currency held by the nonbank public = $15 million - $2 million - $1 million

Currency held by the nonbank public = $12 million

Therefore, the correct answer is B) $12 million.

Vault Cash Is Equal to $2 Million,deposits by Depository Institutions