Question 6 of 10
The monetary base refers to which element of a country's economic system?
A. All money that is circulating throughout the economy
B. Money that is actively being used by businesses and individuals
C. Any funds that can be easily accessed, such as investments in
stocks
D. The rate at which money gains or loses value over time

The monetary base refers to an element of a country's economic system that is all money that is circulating throughout the economy. Thus the correct answer is A.

What is the economy?

The manufacturing and consumption of products and services in a nation are used to estimate its economy, and these statistics are used to analyze each person's purchasing power and determine how much money circulates through the market.

A country's economic factors of production are controlled by one of three main types of economic structures which includes the capitalistic structure, the mixed economy, and the socialist economic structure.

The total quantity of cash in the disposal of the common public or in the form of business bank deposits kept in the assets of the central bank represents the monetary base.

Therefore, option A All money that is circulating throughout the economy is appropriate.

Learn more about the economic system, here:

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