"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 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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from Economics 102: MacroeconomicsChapter 11 / Lesson 4