Suppose a bank with a 10% reserve requirement has $10 million in reserves and $100 million in checkable deposits, and a major corporation makes a deposit of $1 million. . Explain how the deposit...

Suppose a bank with a 10% reserve requirement has $10 million in reserves and $100 million in checkable deposits, and a major corporation makes a deposit of $1 million.

. Explain how the deposit affects the bank’s reserves and checkable deposits.

a. By how much can the bank increase its lending?