the economics of money, banking, and financial markets

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16.3 Control of the Monetary Base

1. 
   

   The monetary base minus currency in circulation equals ____.
   A) reserves
   B) the borrowed base
   C) the nonborrowed base
   D) advances to banks
   Answer: A
   Diff: 1 Type: MC Page Ref: 377
   Skill: Recall
   Objective List: 16.2 Discern who controls the monetary base and what causes it to change

   
   


2. 
   

   The monetary base minus reserves equals ____.
   A) currency in circulation
   B) the borrowed base
   C) the nonborrowed base
   D) advances to banks
   Answer: A
   Diff: 1 Type: MC Page Ref: 377
   Skill: Recall
   Objective List: 16.2 Discern who controls the monetary base and what causes it to change

   
   


3. 
   

   High-powered money minus reserves equals ____.
   A) reserves
   B) currency in circulation
   C) the monetary base
   D) the nonborrowed base
   Answer: B
   Diff: 1 Type: MC Page Ref: 377
   Skill: Recall
   Objective List: 16.2 Discern who controls the monetary base and what causes it to change

   
   


4. 
   

   High-powered money minus currency in circulation equals ____.
   A) reserves
   B) the borrowed base
   C) the nonborrowed base
   D) advances to banks
   Answer: A
   Diff: 1 Type: MC Page Ref: 377
   Skill: Recall
   Objective List: 16.2 Discern who controls the monetary base and what causes it to change