With a 10% reserve requirement ratio,a $100 deposit into New Bank means that the maximum amount New Bank could lend is
A)$90.
B)$100.
C)$10.
D)$110.

Question

Quizplus · Accepted Answer

With a 10% reserve requirement ratio, New Bank is required to keep 10% of the $100 deposit ($10) as reserves and can lend out the remaining 90% ($90). Therefore, the maximum amount New Bank could lend is $90, and the correct answer is choice A.

With a 10% Reserve Requirement Ratio,a $100 Deposit into New