The Monetary Base Is Equal to

question 25

Multiple Choice

The monetary base is equal to

• A)M1.
• B)M2.
• C)currency and coins in circulation plus checkable deposits.
• D)the sum of coins,Federal Reserve notes,and banks' reserves at the Fed.
• E)the sum of coins,Federal Reserve notes,and gold at the Fed.

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Definitions:

Coercive Power

The capacity to force someone to perform a task or behave in a certain way through threats, punishment, or negative consequences.

Reward Power

The capability of an individual to offer incentives to others for performing certain actions or behaviors.

Legitimate Power

A form of authority that derives from an individual's role or position within an organizational hierarchy, giving them the right to make decisions, command, or influence others.

Concern For Task

The focus and prioritization on completing tasks and achieving goals efficiently and effectively within an organization or project.