The Monetary Base Is

question 50

Multiple Choice

The monetary base is

• A) the sum of currency and bond holdings kept by the Fed.
• B) the sum of required reserves and outstanding deposits held by member banks of the Federal Reserve System.
• C) the sum of bond holdings and currency holdings of private banks across the United States.
• D) the sum of currency and required reserves held throughout the United States.
• E) none of the above.

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Definitions:

Per Share

A term used to describe a financial ratio or statistic as it relates to one individual share of stock.

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.

Share

A unit of ownership in a company that entitles the holder to a proportion of the corporation's assets and profits.