Table 143
Monetary Aggregates of the U

question 131

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: In Table 14.3,if the Fed changes the required reserve ratio to 10 percent,the lending capacity of the system would eventually

• A)Increase by $12 billion.
• B)Increase by $120 billion.
• C)Decrease by $12 billion.
• D)Decrease by $120 billion.

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Definitions:

Anesthetic

A substance that induces insensitivity to pain, used during surgical procedures to induce loss of sensation or consciousness.

Insensibility

The lack of physical sensation or the inability to react to sensory stimuli.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Touch

The sense by which objects or pressure are perceived through the skin, vital for human perception and interaction.