Item
Cash held by public
Transactions deposits
Required reserves
Excess reserves
U.S. bonds held by public
Table 14.1
Amount
$\ 250$ billion
$\ 1,000$ billion
$\ 150$ billion
$\ 0$ billion
$\ 1,000$ billion
Monetary Aggregates of the U.S. Financial System
15. 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