Question

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:________

Answer 1

the monetary base is $150 billion

Step-by-step explanation:

The computation of the monetary base is shown below:

Monetary base is

= Currency held by the public + reserve held by the banks

= $100 billion + $50 billion

= $150 billion

Hence, the monetary base is $150 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered