Suppose that a bank with no excess reserves receives a deposit into a checking account of $10,000 in currency. if the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out? a) $2,000
b) $8,000
c) $10,000
d) $50,000

Maximum money that bank can lend is  $50,000

Explanation:

Given data:

Amount deposit is $10,000

reserve ratio is 0.20

Maximum money that bank can lend is calculated as

maximum money = (deposit - reserve)× money multiplier

money multiplier

money multiplier

and reserve is zero hence

maximum money = (10,000 - 0)× 5

maximum money = $50,000

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b) the bill goes to the president.

hope this