Table 141
Monetary Aggregates of the U

$\begin{array}{|l|r|}\hline {\text { Item }} & \text { Amount } \\\hline \text { Cash held by public } & \$ 250 \text { billion } \\\hline \text { Transactions deposits } & \$ 1,000 \text { billion } \\\hline \text { Required reserves } & \$ 150 \text { billion } \\\hline \text { Excess reserves } & \$ \quad 0 \text { billion } \\\hline \text { U.S. bonds held by public } & \$ 1,000 \text { billion } \\\hline\end{array}$
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.