Which of These Entities And/or Groups Can Directly Affect the Monetary

question 10

Multiple Choice

Which of these entities and/or groups can directly affect the monetary base?

• A)The Federal Reserve, commercial banks, and the cash-holding public
• B)The Federal Reserve and commercial banks
• C)Commercial banks, the Fed, and members of Congress
• D)Commercial banks and the cash-holding public

---

Definitions:

Transactions Needs

The requirement for cash or liquid assets for the purpose of meeting immediate expenses or financial obligations.

Collection Float

The time period between when a payment is initiated by a payer and when the funds are available in the payee’s account.

Opportunity Costs

The benefit that is missed or foregone when choosing one alternative over another.

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and spreads.