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20 March, 00:51

If the reserve rate is 8% and a bank receives a deposit of $7000 how much of the $7000, is the bank free to lend

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  1. 20 March, 00:54
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    100% - 8% = 92%, (7000 / 100) x 92 = 6440. the bank is free to lend $6440
  2. 20 March, 01:08
    0
    0.08*7000=560 reserve

    7000-560=6,440 loan out
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