Question

Part III: The third deposit that Apex Savings Bank received was $17,900. If Apex Savings Bank was free toloan out $17,452.50, what was the reserve rate at the time? How much was it required to keep onreserve?

Answer 1

To solve this problem we just have to find the difference and divide it by 17,900

`(17900-17452.50)/(17900)=(445.50)/(17900)=0.025`

We multiply by 100 to express it in percentage

`0.025\cdot100=\text{2}.5`

Therefore, the reserve is 2.5%.