Table 141
Monetary Aggregates of the U

question 89

Multiple Choice

$\begin{array}{|l|r|}\hline {\text { Item }} & \text { Amount } \\\hline \text { Cash held by public } & \$ 250 \text { billion } \\\hline \text { Transactions deposits } & \$ 1,000 \text { billion } \\\hline \text { Required reserves } & \$ 150 \text { billion } \\\hline \text { Excess reserves } & \$ \quad 0 \text { billion } \\\hline \text { U.S. bonds held by public } & \$ 1,000 \text { billion } \\\hline\end{array}$
Table 14.1
Monetary Aggregates of the U.S. Financial System Assume an original balance sheet: Refer to Table 14.1.If the Fed changes the required reserve ratio to 10 percent,ceteris paribus,the lending capacity of the system would eventually

• A)Decrease by $50 billion.
• B)Increase by $50 billion.
• C)Decrease by $500 billion.
• D)Increase by $500 billion.

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Definitions:

Interdependent

The reciprocal relationship between entities where each depends on the other, leading to a situation where their interactions significantly influence their viability or functionality.

Systems Biology

A field of biology that synthesizes knowledge of many small parts to understand the whole. Also referred to as integrative biology or integrative systems biology.

Integrative Biology

A field of biology that focuses on the integration of diverse scientific disciplines to understand biological complexity at various levels, from molecules to ecosystems.

Sexual Reproduction

A biological process by which organisms create offspring by combining genetic materials from two different sexes, typically involving the fusion of sperm and egg cells.