If Currency Held by the Public Equals $100 Billion, Reserves

question 43

Multiple Choice

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

• A) $50 billion.
• B) $100 billion.
• C) $150 billion.
• D) $600 billion.

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