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Re: ::: vuaskari.com ::: MGT411 please confirm

Which of the following statements is the most appropriate? 

       ► The Fed can control the amount of reserves
       ► The Fed can control the size of the monetary base and the price of its components (correct)
       ► The Fed can control the size of the monetary base but not the price of its components
       ► The Fed can control the make up of the monetary base

On Mon, Jul 18, 2011 at 1:58 AM, Wahid Pasha <mc090402676@vu.edu.pk> wrote:
Which of the following best completes the statement; if people decrease their currency
holdings, all else the same, the monetary base

Will not change but the quantity of M2 will increase
Will increase along with the quantity of M2
Will decrease along with the quantity of M2
There will be no change either to the monetary base or M2

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