Table 143
Monetary Aggregates of the U

question 8

Multiple Choice

$\begin{array}{|l|l|}\hline {\text { Item }} & \text { Amount } \\\hline \text { Cash held by public } & \$ 40 \text { billion } \\\hline \text { Transactions deposits } & \$ 80 \text { billion } \\\hline \text { Required reserves } & \$ 20 \text { billion } \\\hline \text { Excess reserves } & \$ 0 \text { billion } \\\hline \text { U.S. bonds held by public } & \$ 125 \text { billion } \\\hline\end{array}$
Table 14.3
Monetary Aggregates of the U.S. Financial System 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.

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Definitions:

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future.

Total Assets

The sum of all assets owned by a company, both current and non-current, used to calculate the company's financial health.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Sales Revenues

Income received from selling goods or services over a period of time.