If a bank had a desired reserve ratio of 10 percent and excess reserves of $2000,what is the largest loan it could extend?

Name: If a bank had a desired reserve ratio of 10 percent and excess reserves of $2000,what is the largest loan it could extend?
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The largest loan the bank could extend is $20,000. This is because the bank's excess reserves are $2,000, and the desired reserve ratio is 10%. This means that the bank can lend out 90% of its excess reserves, which is $2,000 x 0.9 = $18,000.

If a Bank Had a Desired Reserve Ratio of 10