Table 142
Monetary Aggregates of the U

question 125

Multiple Choice

$\begin{array}{|l|r|}\hline{\text { Item }} &{\text { Amount }} \\\hline \text { Cash held by public } & \$ 100 \text { billion } \\\hline \text { Transactions deposits } & \$ 300 \text { billion } \\\hline \text { Required reserves } & \$ 30 \text { billion } \\\hline \text { Excess reserves } & \$ 0 \text { billion } \\\hline \text { U.S. bonds held by public } & \$ 475 \text { billion } \\\hline\end{array}$
Table 14.2
Monetary Aggregates of the U.S. Financial System Assume an original balance sheet: Refer to Table 14.2.If the Fed sells $20 billion in bonds to the public,all of the following are true except

• A)The public will hold $495 billion worth of bonds.
• B)M1 will decrease initially by $20 billion.
• C)M2 will expand initially by $20 billion.
• D)None of the choices are correct.

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Definitions:

Blastocyst

A stage of embryonic development in mammals, occurring roughly five days after fertilization, marked by the formation of a fluid-filled cavity and the differentiation of the embryo into two layers.

Fetal Period

The period in prenatal development from nine weeks after conception until birth, when the brain continues developing, bodily structures are refined, and the fetus grows in length and weight and accumulates fat in preparation for birth.

Germinal Period

The initial two weeks of prenatal development following conception, characterized by rapid cell division and attachment to the uterine wall.

Embryonic Period

The stage of prenatal development from approximately the second to the eighth week after fertilization, during which major organs and structures within the embryo begin to develop.