Most of the increase in the monetary base between 2007 and 2012 was due to increases in:

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Quizplus · Accepted Answer

The increase in the monetary base was mostly due to increases in excess reserves. This was a result of the Federal Reserve's policy of quantitative easing, where they purchased large quantities of Treasury bonds and mortgage-backed securities from banks, in exchange for creating excess reserves in the banks' accounts at the Fed. This was done to provide liquidity to the banking system and stimulate lending during the financial crisis. Increases in currency and bank deposits also contributed to the increase in the monetary base, but to a lesser extent than excess reserves. Treasury bills did not play a significant role in the increase in the monetary base.

Most of the Increase in the Monetary Base Between 2007