A bank receives a new deposit of $1,000. If the reserve requirement is 20%, classify the following actions as either 'allowed' or 'not allowed' based on this reserve requirement. Which of the following actions would be allowed?

When a bank receives a new deposit of $1,000, it must keep a certain amount in reserve because of the reserve requirement. In this case, with a 20% reserve requirement, the bank needs to keep $200 in reserve and can use the remaining $800 for loans or investments. This means the bank is allowed to loan out the $800, as it is above the required reserve. However, if the bank were to loan out the entire $1,000 without keeping the required $200, that action would not be allowed. Therefore, keeping $200 in reserve and loaning out $800 is the correct and allowed action.