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Why Aren't Treasury Deposits with the Fed Part of the Monetary

Question 6

Multiple Choice

Why aren't Treasury deposits with the Fed part of the monetary base?


A) Because they are currency and currency is not included in the monetary base
B) Because no deposits at the Fed are included in the monetary base
C) Because they aren't assets of either the nonbank public or banks
D) Because the Fed is unable to exercise effective control over their size

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