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Which phrase best describes a country's monetary base?A.Only currency and coins in circulation in the economyB.All money invested in the stock marketC.All money in circulation throughout the economyD.Only money that cannot be easily spent

Question

Which phrase best describes a country's monetary base?A.Only currency and coins in circulation in the economyB.All money invested in the stock marketC.All money in circulation throughout the economyD.Only money that cannot be easily spent

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Solution

The phrase that best describes a country's monetary base is "Only currency and coins in circulation in the economy". This is because the monetary base of a country includes all the physical money such as coins and currency, as well as the money deposited in banks. It represents the most liquid form of money and can be easily spent or used in transactions. Therefore, option A is the most accurate.

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