Which of the following is NOT a part of the monetary base?
A) U.S. government securities owned by the Fed
B) Federal Reserve notes
C) Chemical Bank's deposits of reserves at the Fed
D) First Bank's required reserves held at the Federal Reserve

Question

Quizplus · Accepted Answer

U.S. government securities owned by the Fed are not part of the monetary base. The monetary base includes currency in circulation (Federal Reserve notes) and reserves held by banks at the Fed, but not the securities owned by the Fed.

Which of the Following Is NOT a Part of the Monetary