Initially a bank has a required reserve ratio of 10 percent and no excess reserves.If $1,000 is deposited into the bank,then,ceteris paribus,

Name: Initially a bank has a required reserve ratio of 10 percent and no excess reserves.If $1,000 is deposited into the bank,then,ceteris paribus,
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With a 10 percent required reserve ratio, the bank must keep $100 (10% of $1,000) as required reserves and can lend out the remaining $900, thus increasing its loans by $900.

Initially a Bank Has a Required Reserve Ratio of 10