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?

Question

Quizplus · Accepted Answer

The reserve requirement is the percentage of a bank's deposits that must be held in reserve, rather than being lent out. In this case, Perry's bank must hold 15% of $10,000, or $1,500 in reserve. The bank can then lend out the rest, which is $8,500. Therefore, the answer is C.

Perry Deposits $10,000 in His Bank Account