In August 2006, the average value of the monetary base was about
A)$800 million.
B)$8 billion.
C)$800 billion.
D)$8 trillion.

Question

Quizplus · Accepted Answer

The monetary base is the sum of currency in circulation and reserve balances held by banks at the Federal Reserve. As of August 2006, the total currency in circulation was approximately $835 billion and reserve balances were approximately $10 billion. Adding these together gives us a total monetary base of approximately $845 billion, which is closest to answer choice C.

In August 2006, the Average Value of the Monetary Base