Table 142
Monetary Aggregates of the U

$\begin{array}{|l|r|}\hline{\text { Item }} &{\text { Amount }} \\\hline \text { Cash held by public } & \$ 100 \text { billion } \\\hline \text { Transactions deposits } & \$ 300 \text { billion } \\\hline \text { Required reserves } & \$ 30 \text { billion } \\\hline \text { Excess reserves } & \$ 0 \text { billion } \\\hline \text { U.S. bonds held by public } & \$ 475 \text { billion } \\\hline\end{array}$
Table 14.2
Monetary Aggregates of the U.S. Financial System Assume an original balance sheet: Refer to Table 14.2.If the Fed sells $20 billion in bonds to the public,all of the following are true except

A) The public will hold $495 billion worth of bonds.
B) M1 will decrease initially by $20 billion.
C) M2 will expand initially by $20 billion.
D) None of the choices are correct.