The Monetary Base Consists of the Sum of

question 30

Multiple Choice

The monetary base consists of the sum of

• A)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks.
• B)Bank of Canada notes held outside the Bank of Canada, the desired reserves of chartered banks, and coins held by banks.
• C)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
• D)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
• E)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and notes and coins held by banks.

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Definitions:

Noncontrolling Interest

A minority stake in a corporation, representing less than half of the voting shares, and therefore not having control over the company.

Initial Value Method

An accounting practice in which an investment is recorded at its purchase cost without adjusting for market variations.