What is monetary base, Macroeconomics

Assignment Help:

What is Monetary base

The monetary base is defined as the total value of all currency (banknotes and coins) outside the central bank and commercial banks' (net) reserves with the central bank. The monetary base is a debt in the balance sheet of the central bank. Its assets are mostly comprised of the foreign exchange and gold reserves and bonds issued by the national government. Currency inside the central bank has no value - it is comparable to an "I owe you" written by yourself and held by yourself.

 


Related Discussions:- What is monetary base

Stages and various coordination mechanisms involved in polic, explain the s...

explain the stages and various coordination mechanisms involved in policy processes.

What is difference between explicit cost and implicit cost, What are the di...

What are the difference between explicit cost and implicit cost? Both are concerns to Opportunity Cost and Decisions: An explicit cost is a cost which involves essentially

Income and expedenture, Illustrate the circular flow of income and expendit...

Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)

Investments, what are the objectives of the determinants of investments

what are the objectives of the determinants of investments

U.k. produces and imports eggs, The U.K. produces and imports eggs. Suppose...

The U.K. produces and imports eggs. Suppose that the government imposed a quota on imports: Foreign suppliers could export no more than Q eggs (regardless of price). What effect do

Absolute advantage and comparative advantage, Differences between absolute ...

Differences between absolute advantage and comparative advantage?              Ans) Absolute benefit and comparative benefit are two basic concepts to international trade. Under

Multiple expansion in banking, Multiple Expansion We have seen that a s...

Multiple Expansion We have seen that a single bank in a banking system can lend rupee for rupee with its excess reserves. What is the lending ability of the commercial banking

Difference between opportunity and accounting cost, Provide an explanation ...

Provide an explanation of difference between opportunity and accounting cost, and accounting and economic profits. Then, please provide an example from your experience where opport

What is social cost benefit analysis, It refers to the study of feasibility...

It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we

As the result of a tariff who will benefit, In general, who will benefit as...

In general, who will benefit as the result of a tariff? Domestic Producers Domestic Consumers The domestic government a. I only b. II only c. both I and III d.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd