Let's break down the problem to understand how much the bank can loan out from a new deposit of [tex]$10,000, given a reserve ratio of 10%.
### Step-by-Step Solution:
1. Understanding Reserve Ratio:
- The reserve ratio is the percentage of deposits that a bank must hold in reserve and not loan out.
- In this case, the reserve ratio is 10%.
2. Calculating the Required Reserves:
- To determine the required reserves, we multiply the deposit amount by the reserve ratio.
- Required Reserves = Deposit Amount × Reserve Ratio
- Required Reserves = $[/tex]10,000 × 0.10 = [tex]$1,000
3. Amount Available for Loans:
- The bank can loan out the remaining amount after setting aside the required reserves.
- Loanable Amount = Deposit Amount - Required Reserves
- Loanable Amount = $[/tex]10,000 - [tex]$1,000 = $[/tex]9,000
Therefore, with a new deposit of [tex]$10,000 and a 10% reserve ratio, the bank would be able to loan out $[/tex]9,000.
The correct answer is:
B. $9,000
