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Suppose a bank accepts a $5000 deposit and has a reserve ratio of 10%. The bank will keep $ ' 500 in reserves and loan out $ ' 45m . Its total assets are $' 959'} and liabilities are $' 95'3\" '. Now suppose that the individual who receives the loan spends the monev. and the individual who receives the payment deposits the entire amount in the bank. of this new deposit in reserves and loan out $ The bank will keep $' ' .After the second deposit, its total assets are 31': ' in loans. Its total comprised of $' in reserves and $' liabilities are $ ' . comprised entirer of checkable deposits. in new money:r using fractional-reserve banking. The bank has created $ ' The money' multiplier is