If a bank receives a new transaction deposit of $100,000 and the reserve ratio is 20 percent, then the bank could expand its loans by as much as $80,000. $400,000. $20,000. $100,000.

$80,000

Explanation: The reserve ratio is the percentage of deposits a bank is to leave in its reserve account. From the question above, the total deposits is $100,000 and the reserve ratio is 20%. The reserve amount is $20,000(100,000*0.2) while the bank can loan out $80,000 balance of the $100,000 deposit.

B. $400,000

Explanation:

Recall that,

Max change in loans = the initial change in excess reserve × the money multiplier

Where

Initial change in excess reserve = (1 - 2%) × 100 = 80,000

Money multiplier = 1/2% = 5

Thus

Change in max loans = 80,000 × 5

= $400,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; swot analysis;