The Monetary Base Is Defined as

question 115

Multiple Choice

The monetary base is defined as

• A)bank reserves plus currency held by the nonbank public.
• B)bank reserves minus vault cash.
• C)all deposits at the Fed.
• D)deposits at the Fed plus vault cash.

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Definitions:

Recognize

In tax terminology, to report and include a transaction in taxable income for the period it was realized, regardless of whether or not payment was received.

Gain

An increase in the value of an investment or asset.

Donor's Adjusted Basis

The value used for tax purposes to determine the gain or loss when property is given as a gift, generally the cost basis of the donor at the time of the gift.

Fair Market Value

The price that property would sell for on the open market, between a willing buyer and a willing seller each having reasonable knowledge of all pertinent facts.