The Monetary Base Is the Sum Of

question 355

Multiple Choice

The monetary base is the sum of:

• A)reserves held by the banks and currency in circulation.
• B)checkable bank deposits and bank reserves.
• C)savings deposits and currency in circulation.
• D)checkable bank deposits and currency in circulation.

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Definitions:

Indirect Taxes

Taxes levied on goods and services rather than on income or profits, such as sales tax or value-added tax (VAT).

Corporate Income Tax

A tax imposed on the net income (profit) of corporations, calculated as a percentage of their net income.

Social Security Tax

is a tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors.

Regressive Tax

Falls more heavily on the poor than on the rich; for example, Social Security tax.