Assume the reserve requirement is 10% and all banks are fully loaned-up. If a new deposit of $10,000 is made into Bank X, that bank can make new loans of

Name: Assume the reserve requirement is 10% and all banks are fully loaned-up. If a new deposit of $10,000 is made into Bank X, that bank can make new loans of
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If the reserve requirement is 10%, the bank must keep 10% of the new deposit ($1,000) as reserves and can loan out the remaining 90% ($9,000). Therefore, Bank X can make new loans of $9,000.

Assume the Reserve Requirement Is 10% and All Banks Are