What is a major characteristic of money that is part of the monetary base?

A major characteristic of money that is part of the monetary base is that it is highly liquid and readily available. The monetary base, often referred to as "high-powered money," includes physical currency—like coins and paper money—as well as balances held at central banks that can be easily accessed by commercial banks.

Liquidity is a crucial feature of money, as it determines how easily an asset can be converted into cash or used for transactions. In the context of the monetary base, this means that the assets are immediately usable for purchasing goods and services. This characteristic helps facilitate economic activity by ensuring that individuals and businesses can engage in transactions without delay.

On the other hand, long-term securities are not part of the monetary base because they are not immediately convertible to cash. Offshore accounts do not typically contribute to the immediate domestic money supply and carry different implications for liquidity. High-risk factors are not inherent to the monetary base; in fact, the assets constituting the monetary base are generally considered safe and stable. This context helps underline the importance of liquidity as a defining characteristic of money within the monetary base.