Table 143 Monetary Aggregates of the U Assume an Original Balance Sheet: in Table 14

question 36

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: In Table 14.3,if the Fed changes the required reserve ratio to 10 percent,the lending capacity of the system would eventually

• A)Increase by $12 billion.
• B)Increase by $120 billion.
• C)Decrease by $12 billion.
• D)Decrease by $120 billion.

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Definitions:

Allowance Factor

A multiplier or percentage used to estimate additional costs or time that may not be accounted for in initial calculations.

Work Measurement

The process of determining the time required for a qualified worker to complete a specified task under given conditions.

Time Studies

The process of measuring the time required to perform tasks or work operations as a means of establishing standard times and improving efficiency.

Worker's Performance

The assessment of how effectively an individual's work activities and output achieve the expectations or objectives set by the employer.