The Monetary Base Is the Sum Of

question 64

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:

Maturity Value

The amount to be paid to the holder of a financial instrument at its maturity date.

Note Receivable

A written promise that one party will receive a specified sum of money from another party at a future date.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Note Duration

The length of time until a note payable or receivable is due to be paid or received.