1.The monetary base exceeds the money supply.
2.The cash-holding behavior of the public affects the monetary base.
3.The Federal Reserve decreases the monetary base whenever it sells government securities.
4.When reserve requirements are increased, interest rates should increase.
5.If cash drains increase, the Fed may offset their effects with open market sales.
6.The Fed substantially controls M1 by controlling total reserves of depository institutions.
7.When the Fed sells an asset to the private sector, the monetary base declines.
8.When a bank orders currency from the Fed, the monetary base does not change.
9.A significant move by the Fed toward a “tight” money policy is likely to enhance exports.
10.Housing investment is sensitive to changes in interest rates.