Which of the following causes a decrease in the monetary base? A. An open-market

Question

Which of the following causes a decrease in the monetary base? A.  An open-market purchase B.  A decrease in the discount rate C.  An increase in "float"--i.e., the amount of funds contained in the checks presented for payment D.  The nonbank public's deposit of currency into checking accounts E.  An increase in Treasury deposits with the Fed, since the Treasury withdraws the money from the banking system to deposit with the Fed, thereby decreasing bank reserves. Which of the following causes a decrease in the monetary base? A.  An open-market purchase B.  A decrease in the discount rate C.  An increase in "float"--i.e., the amount of funds contained in the checks presented for payment D.  The nonbank public's deposit of currency into checking accounts E.  An increase in Treasury deposits with the Fed, since the Treasury withdraws the money from the banking system to deposit with the Fed, thereby decreasing bank reserves.

Explanation / Answer

Options A) B) and E) CAUSE A DECREASE IN MONETARY BASE

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