Answer: $180,000
Explanation: Reserve ration of Indianapolis is 10%
A Construction company deposits $200,000 in the bank
How much of the deposit will be given out as loan?
since the reserve ratio is 10%
deposit is $200,000
Reserve ratio of this deposit = 200,000 *10% = 20,000
The bank can loan out $200000-20000= $180,000
Therefore the bank can only loan out $180,000 and keep the $20,000 in its reserve.