3 years ago

The monetary base is equal to

Business

1 answer:

ss7ja [257]3 years ago

6 0

Answer:

The correct answer is option A.

Explanation:

The monetary base can be defined as the amount of money that is in circulation in the hands of the public or held as reserves by banks.

The monetary base in an economy is equal to all currency in circulation plus reserves held by banks.

In other words, it includes highly liquid funds such as coins, notes, and bank deposits.

The money supply is a broader concept than the monetary base and includes the monetary base and other assets as well.

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