Monetary foundation is the sum of legal reserves plus the amount of currency and coin held by the public.

Question

Quizplus · Accepted Answer

Monetary base or foundation refers to the total amount of a country's currency in circulation or in commercial bank deposits in the central bank. It consists of the total currency (coins and paper currency) in circulation among the public and in the vaults of commercial banks, plus the reserves held by commercial banks at the central bank, not the sum of legal reserves plus the amount of currency and coin held by the public.

Monetary Foundation Is the Sum of Legal Reserves Plus the Amount