The Monetary Base Includes

question 20

Multiple Choice

The monetary base includes

• A) currency outside banks only.
• B) M0 and M1.
• C) inside money.
• D) money drawn from credit cards.
• E) all money available outside of the financial system.

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Definitions:

Market Value

The ongoing purchase or sale price of an asset or service.

Firm Commitment Underwriting

A type of underwriting where the underwriter buys the entire offering from the issuer and sells it to investors, assuming full financial risk.

Underwriting Spread

The difference between the amount underwriters pay to acquire securities from the issuer and the price at which they sell these securities to investors.

Shares

Portions of ownership in a corporation or financial asset available to investors.