The Monetary Base Consists of

question 470

Multiple Choice

The monetary base consists of

• A) the quantity of money.
• B) government securities held by the Fed.
• C) the sum of Federal Reserve notes, coins, and depository institutionsʹ deposits at the Fed.
• D) demand deposits and vault cash.

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Definitions:

Fair Value Through Profit or Loss

An accounting approach where financial assets are recorded at their fair value, with changes affecting the profit or loss statement directly.

Market Value

The current price at which an asset can be bought or sold in a public market.

Cost Method

An accounting method used to value investments where the investment is recorded at purchase cost without recognizing interim income or loss.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without control or joint control.