Answer:
cannot safely lend out more money
Explanation:
Since the reserve requirement is 10% and the bank has $5 million of checkable deposits and actual reserves of $500,000.
Therefore the reserve requirement = 10% of checkable deposits = 0.1 × $5 million = $500000.
This means that the minimum reserve should be $500000. The amount of money that can be lend out = actual reserve - reserve requirement = $500000 - $500000 = 0
Therefore the bank cannot lend out more money
