A bank receives a deposit of $10,000 and has a required reserve rate of 15%.What amount is available for loans to the bank?

Name: A bank receives a deposit of $10,000 and has a required reserve rate of 15%.What amount is available for loans to the bank?
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Question

Quizplus · Accepted Answer

The required reserve rate is 15%, meaning the bank has to keep 15% of the deposit ($1,500) in reserve. Therefore, the amount available for loans is $10,000 - $1,500 = $8,500. Answer choice C is the correct choice.

A Bank Receives a Deposit of $10,000 and Has a Required