The Monetary Base Is the Sum Of

question 108

Multiple Choice

The monetary base is the sum of:

• A) reserves and currency in the hands of the public.
• B) reserves and M2.
• C) currency in the hands of the public and M2.
• D) currency in the hands of the public M1.

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Definitions:

Incentive Function

The role of incentives in influencing the behavior and decisions of individuals or organizations.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity controls the market prices.

Resource

Any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit, including natural resources, human resources, and financial resources.