Which of the following is included in the monetary base?

The monetary base, also referred to as the money supply or high-powered money, includes the total amount of a country's currency in circulation and the reserves held by the central bank. Specifically, this consists of physical currency such as notes and coins that are in the hands of the public, as well as the reserves that commercial banks hold at the central bank.

Physical notes and coins, being the most direct representation of money, are essential components of the monetary base. They represent the liquidity available in the economy for consumers and businesses to conduct transactions. This is why notes and coins are included in the definition of the monetary base.

In contrast, savings accounts, stocks and bonds, and real estate investments are not considered part of the monetary base. Savings accounts represent deposits held by individuals in banks, which contribute to broader measures of money supply, but they do not constitute physical currency. Stocks and bonds are financial assets representing ownership or debt and do not have the same liquidity as cash. Real estate investments are also not a form of currency; instead, they are tangible assets that can appreciate or depreciate in value but do not directly contribute to the monetary base.

Thus, the correct choice emphasizes the most fundamental elements that compose the monetary base, which are the notes and