The monetary base is the sum of:

Question

Quizplus · Accepted Answer

The monetary base is defined as the sum of reserves held by banks and currency in the hands of the public. M2 includes components of the monetary base (currency in the hands of the public) but also includes other types of money such as savings accounts and small time deposits. M1 is a narrower measure of the money supply that includes only the most liquid forms of money, such as physical currency, demand deposits, and traveler's checks.

The Monetary Base Is the Sum Of