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Question

uC.

1.7. The monetary base is made up of:

B

a) Cash in the hands of the public and bonds. No

b) Cash in the hands of the public and bank reserves.

c) Cash in the hands of the public and sight deposits.

d)

Cash in the hands of the public and wealth. No

Answer

b) Cash in the hands of the public and bank reserves.

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The monetary base is made up of cash in the hands of the public and bank reserves. It does not include bonds, sight deposits, or wealth...