Another name for the monetary base is
A)commodity money.
B)fiat money.
C)high-powered money.
D)bank reserves.

Question

Quizplus · Accepted Answer

The monetary base is also known as high-powered money because it serves as the foundation for the money supply in an economy. It refers to the total amount of currency in circulation and the reserves held by banks at the central bank, which forms the basis for the creation of credit and the expansion of the money supply. The other options (commodity money, fiat money, and bank reserves) do not accurately capture the nature or role of the monetary base.

Another Name for the Monetary Base Is