Answer:
Maximum money that bank can lend is $50,000
Step-by-step 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