Table 143 Monetary Aggregates of the U Assume an Original Balance Sheet: the Money Supply (M1)in Table

question 18

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: The money supply (M1) in Table 14.3 is

• A)$20 billion.
• B)$40 billion.
• C)$80 billion.
• D)$120 billion.

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Definitions:

Numerator

The top number in a fraction that indicates how many parts of the whole or group are being considered.

Denominator

The bottom number in a fraction, indicating into how many parts the whole is divided.

Unit Value

The worth assigned to a single unit of an item, used to calculate cost, quantity, or other statistical measures.

Fraction

A mathematical expression representing a part of a whole, displayed as a numerator over a denominator.