Table 14.3Monetary Aggregates of the U.S. Financial SystemItemAmountCash held by public$40 billionTransactions deposits$80 billionRequired reserves$20 billionExcess reserves$0 billionU.S. bonds held by public$125 billionAssume an original balance sheet: On the basis of the information in Table 14.3, the required reserve ratio is

A. 25 percent.
B. 15 percent.
C. 5 percent.
D. 20 percent.


Answer: A

Economics

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