Which of these options is NOT part of the monetary base?

The monetary base, also known as the money supply or M0, includes the most liquid forms of money within an economy. It is primarily composed of currency in circulation and reserves that banks hold at the central bank. In this context, the monetary base comprises several key components:

• Currency in circulation refers to the physical cash (coins and paper money) that individuals and businesses use for transactions.

• Commercial bank deposits with the central bank represent the reserves that commercial banks maintain with the central bank, which can be utilized for various purposes, including meeting reserve requirements.

• Vault cash is the cash that banks hold in their vaults, which is part of their reserves and is available for withdrawals and transactions.

Public equity investments, on the other hand, do not fall within the definition of the monetary base. These investments represent ownership in a company and are not considered liquid forms of money that can be readily used for transactions. They are part of the capital markets and involve ownership stakes in businesses, rather than being a direct component of the money supply. This makes the option regarding public equity investments the correct choice as it is indeed not part of the monetary base.