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.

---

Definitions:

Gender Differences

The distinctions in characteristics, behaviors, and roles traditionally associated with being male or female in a society.

Cultural Arguments

Discussions or assertions that are based on the beliefs, values, practices, and norms of particular societies or groups.

Evolutionary Psychology

A theoretical approach in psychology that examines how evolutionary theory influences human thoughts, behaviors, and psychological traits.

Traits

Characteristic patterns of thought, feeling, and behavior that are relatively stable over time and across situations.