$\begin{array}{|l|l|}
\hline {\text { Item }} & \text { Amount } \
\hline \text { Cash held by public } & \$ 40 \text { billion } \
\hline \text { Transactions deposits } & \$ 80 \text { billion } \
\hline \text { Required reserves } & \$ 20 \text { billion } \
\hline \text { Excess reserves } & \$ 0 \text { billion } \
\hline \text { U.S. bonds held by public } & \$ 125 \text { billion } \
\hline
\end{array}$
Table 14.3
Monetary Aggregates of the U.S. Financial System Assume an original balance sheet: On the basis of the information in Table 14.3,the required reserve ratio is

Question

Quizplus · Accepted Answer

The required reserve ratio is calculated as required reserves divided by transaction deposits, which is $20 billion / $80 billion = 0.25 or 25%.

Table 143 Monetary Aggregates of the U

Table 143
Monetary Aggregates of the U