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.

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific time, including assets, liabilities, and shareholders' equity.

Depreciation Methods

Various techniques used to systematically allocate the cost of a tangible asset over its useful life, including straight-line, declining balance, and units of production methods.

Goodwill

An intangible asset representing the excess value paid for a company over its book value, reflecting factors like brand reputation or customer relations.