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"Monetary base" is considered a more stable variable than its individual components because: a....

Question:

"Monetary base" is considered a more stable variable than its individual components because:

a. It can be measured more accurately

b. There can be random or unpredictable shifts between currency and deposits

c. The actual value of a currency in circulation cannot be properly estimated

The temporary net increase in the monetary base arising from the Bank of Canada's cheque clearing process is known as:

a. The "sink"

b. The "overflow"

c. The "float"

Deposit Accounts:

Deposit accounts are a kind of savings or current account held by account holders who can make withdrawals or make deposits in this account. Another type of deposit account is term deposits.

Answer and Explanation:

The correct answer is option "a", it can be measured more accurately

Monetary base or the high powered money is the amount of currency and...

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What is Money? - Definition and Types

from Economics 102: Macroeconomics

Chapter 11 / Lesson 4
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