Question

The central bank of Canada is the Bank of Canada.

Suppose that inâ Canada, banks' reserves at the Bank of Canada were $1 âbillion, Bank of Canada notes were $60 billion, and the quantity of coins was $4 billion. What was the monetary base?

Answer 1

$65 billion

Step-by-step explanation:

Monetary base means the total sum of banks’ reserves at the Fed (Bank of Canada), Federal reserve notes (Bank of Canada notes), and quantity of coins.

Monetary base = $1 billion + $60 billion + $4 billion

Monetary base = $65 billion