3 years ago

if the reserve rate is 3% and a bank receives a deposit of 16,000 how much of the 16,000 is the bank free to loan out?

Mathematics

1 answer:

Aleksandr-060686 [28]3 years ago

6 0

that means the bank keeps 3% and can loan out 97% of the total

16000*0.97 = $15,520 can be loaned out

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