The Monetary Base Consists of

question 85

Multiple Choice

The monetary base consists of

• A) currency in circulation and reserves.
• B) government securities held by the Fed and discount loans.
• C) government securities held by the Fed and currency in circulation.
• D) discount loans and reserves.

---

Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered during depreciation calculations.

Double-Declining Balance

A method of accelerated depreciation where an asset’s book value is decreased at double the rate of its straight-line depreciation.