What if a customer deposits 10000 into a bank how much money would the bank be capable of lending to an eligible loan applicant if this bank retains 20 percent of the deposit to cover withdrawals?

If a customer deposits $10,000 into a bank and the bank retains 20% to cover withdrawals, it will hold $2,000 in reserve. This means the bank can lend out the remaining $8,000. Therefore, the bank would be capable of lending $8,000 to an eligible loan applicant.