Table 143 Monetary Aggregates of the U Assume an Original Balance Sheet: on the Basis of the Item

question 62

Multiple Choice

Table 14.3 Monetary Aggregates of the U.S.Financial System
$\begin{array}{|l|r|}\hline{\text { Item }} & \text { Amount } \\\hline \text { Cash held by public } & \$ 40 \text { billion } \\\hline\text { Transactions deposits } & \$ 80 \text { billion } \\\hline\text { Required reserves } & \$ 20 \text { billion } \\\hline\text { Excess reserves } & \$ 0 \text { billion } \\\hline\text { U.S. bonds held by public } & \$ 125 \text { billion }\\\hline \end{array}$
Assume an original balance sheet: On the basis of the information in Table 14.3,the required reserve ratio is

• A)5 percent.
• B)15 percent.
• C)25 percent.
• D)20 percent.

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Definitions:

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