17. If the market rate of interest is 5% and the expected inflation rate is 2% then the real rate of interest is about: a. -3% d. 10% b. 3% e. none of the above c. 7% Figure 1 Assets Liabilities $75,000 (excess reserves) | $100,000 (deposit) $25,000 (required reserves) 18. In figure 1, the bank in figure 1 can make an additional loan of at most: a. $25,000 d. $200,000 b. $75,000 e. none of the above c. $100,000 19. If people hold no cash, banks hold no excess reserves and the bank in figure 1 is the only bank, the it will expand deposits to: a. $100,000 d. $1,000,000 b. $400,000 e. none of the above C. $500,000 20. If people hold no cash, banks hold no excess reserves and the bank in figure 1 is the only bank, the it will eventually hold required reserves of: a. $100,000 d. $1,000,000 b. $400,000 e. none of the above c. $500,000