Business

24 May, 15:00

Choose the statement that is incorrect.

A. The monetary base is the sum of Federal Reserve notes, coins, and depository institution deposits at the Fed.

B. The Fed's liabilities plus coins issued by the Treasury make up the monetary base.

C. Coins, which are issued by the Treasury are an asset of the Fed and a component of the monetary base.

D. When the Fed changes the monetary base, the quantity of money and interest rate change.

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