Central bank money refers to

O A. currency held by people plus reserves held by banks

O B. the money that the central bank has issued.

O C. the liabilities of the central bank.

O D. all of the above.

O E. A and C only.

Central bank money differs from money in general in that money excludes

The options for question number 2 are 1. Checkable deposits 2. reserves 3. gold

Answer: 1. Option D

2. Options A

Explanation:

1. In simple words, central money refers to total amount of notes and coins circulating in the economy. It is also sometimes referred to as monetary base.

Thus, from the above explanation we can say that central bank money is a broad term and all the options written are included in central bank money.

2. The amount of money that the general public has invested in the banks, so that they can access it when needed through checks and drafts is called Checkable deposits. As per the subject matter of microeconomics it is not included in general money.

Thus, option A is correct.