Perry deposits $10,000 in his bank account. If the reserve requirement is 15%, how much of this amount can his bank make in new loans?

Name: Perry deposits $10,000 in his bank account. If the reserve requirement is 15%, how much of this amount can his bank make in new loans?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Perry's bank is required to keep 15% of his deposit ($10,000) as reserves, which equals $1,500. This means the bank can make new loans with the remaining $8,500. Therefore, the answer is B.

Perry Deposits $10,000 in His Bank Account