The Monetary Base Is the Sum of

question 125

Multiple Choice

The monetary base is the sum of

• A)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks.
• B)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
• C)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and notes and coins held by banks.
• D)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
• E)Bank of Canada notes held outside the Bank of Canada, the desired reserves of chartered banks, and coins held by banks.

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Definitions:

Production Possibility

A concept representing the various combinations of goods and services an economy can produce, given certain resources and technology.

Linear Production

A production process where inputs are combined in fixed proportions and the output level changes linearly with changes in input levels.

Labor Hours

A measure of the amount of work effort, in hours, performed by employees within a specific time period.

Normative View

An opinion or viewpoint based on what is considered to be ideal or how things should be rather than on empirical evidence.