Table 142
Monetary Aggregates of the U

question 30

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: The level of total reserves in Table 14.2 is

• A)$330 billion.
• B)$30 billion.
• C)$475 billion.
• D)$315 billion.

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Definitions:

Minimum Amount

The smallest quantity or value permitted or possible in a given set of circumstances.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay off debts.

Election

The process through which individuals select their leaders or decide on matters of public policy through voting in a democratic society.