If the reserve rate is 4% and a bank, receives a deposit of $12,000, how much of the $12,000 is the Bank free to loan out?

asked Jan 20, 2018 85.8k views

5 votes

by CodyK

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reserve rate is the amount the bank keeps, so they would loan out 96%

12000x 0.96 = $11,520 is free to laon out

Ops answered Jan 24, 2018

by Ops

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