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25 May, 13:18

The relationship between borrowed reserves (BR), the nonborrowed monetary base (MBn), and the monetary base (MB) is Question 14 options: A) BR = MBn - MB. B) MB = MBn - BR. C) BR = MB - MBn. D) MB = BR - MBn.

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  1. 25 May, 14:18
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    Option C.

    Explanation:

    Borrowed reserves = Monetary base - Nonborrowed monetary base

    Borrowed reserves are the money that the Federal Reserves System member borrows from the Federal Reserve Bank to maintain the required reserve.

    Amount of total currency which is in circulation in the public in the present time or the amount of currency which is held in the commercial bank deposits in the central bank's reserves is termed as Monetary Base.

    The fund that is held by a financial institution in cash is termed as Nonborrowed Monetary Base.
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Home » Business » The relationship between borrowed reserves (BR), the nonborrowed monetary base (MBn), and the monetary base (MB) is Question 14 options: A) BR = MBn - MB. B) MB = MBn - BR. C) BR = MB - MBn. D) MB = BR - MBn.
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