Question

Which of the following are INCORRECT:A. ​Coins, which are issued by the Treasury are an asset of the Fed and a component of the monetary base. B. When the Fed changes the monetary​ base, either the quantity of money changes or the interest rate changes but both do not occur. C. The monetary base is the sum of Federal Reserve​ notes, coins, and deposits at commercial banks. D. The​ Fed's liabilities plus coins issued by the Treasury make up the monetary base.

Answer 1

A. ​Coins, which are issued by the Treasury are an asset of the Fed and a component of the monetary base.

Step-by-step explanation:

Coins issued by the government are part of the money supply of the country, but they are not an asset of the FED. The Fed's assets are: Treasury holdings, agency and mortgage backed securities, foreign currency holdings and LLCs that have their assets consolidated in the FED's balance sheet.