If Federal Reserve notes and coins are $765 billion,and banks' reserves at the Fed are $8 billion,the gold stock is $11 billion,and the Fed owns $725 billion of government securities,what does the monetary base equal?
A)$765 billion
B)$773 billion
C)$776 billion
D)$744 billion
E)$1,509 billion

Question

Quizplus · Accepted Answer

The monetary base equals the sum of Federal Reserve notes and coins in circulation ($765 billion) plus banks' reserves at the Fed ($8 billion) plus the gold stock ($11 billion) plus the Fed's holdings of government securities ($725 billion), which equals $773 billion.

If Federal Reserve Notes and Coins Are $765 Billion,and Banks