Table 141
Monetary Aggregates of the U

question 147

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 buys $10 billion in bonds from the public,all of the following are true except

• A)The public will still hold $990 billion worth of bonds.
• B)M1 will increase initially by $10 billion.
• C)The discount rate will rise.
• D)None of the choices are correct.

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Definitions:

Epicatechin

A flavanol, a type of natural phenol and antioxidant, found in certain plants such as cocoa and green tea.

Muscle Cells

Specialized cells also known as myocytes, they contract and relax to produce movement and are an essential component of the muscular system.

Epicatechin

A type of flavonoid found in certain plants such as green tea and cocoa, known for its antioxidant properties and potential health benefits.