How does this transaction affect the size of monetary base

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Question: Suppose the Federal Reserve Bank of Minneapolis purchases $1,000 of newly minted quarters from the U.S. Treasury; and the reserve bank stores these quarters in its vault. The reserve bank pays the U.S. Treasury for these quarters by increasing Treasury deposits at the Federal Reserve by $1,000. How, if at all, does this transaction affect the size of the monetary base? Please defend your reasoning.

Reference no: EM133328078

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