youre confusing deposits and loans. The 10% reserve requirement applies to deposits. So no, if I have 10K in my bank account, the bank won't have that full 10K in currency at the bank.
But if i go for a loan, and the bank gives me $10K to buy a car. then yeah, they absolutely do have that 10K on hand. Otherwise, they wouldnt be able to give it to me.
Not exactly. You are thinking that it just has to have 10% of deposits in cash on hand at the bank, but it means that they can actually loan out more money than what it has in cash on hand. It's like if you had $1000 in savings, you might be comfortable having a $10,000 car loan because it doesn't seem too risky.