The Monetary Base Is Equal to the Sum of Coins

question 69

Multiple Choice

The monetary base is equal to the sum of coins,

• A)and checkable deposits at banks.
• B)currency and checkable deposits at banks.
• C)U.S. government securities owned by the Federal Reserve and Federal Reserve notes.
• D)currency, banks' reserves at the Federal Reserve and checkable deposits at banks.
• E)currency and banks' reserves at the Federal Reserve.

---

Definitions:

Price Level

An index that measures the average level of prices of goods and services in an economy over a period of time.

Real Wages

Wages adjusted for inflation, reflecting the true purchasing power of income received by workers.

Nominal Income

The amount of money earned in current dollars, without adjustment for inflation, affecting purchasing power over time.

Real Income

Income of individuals or nations after adjusting for inflation, reflecting the actual purchasing power.