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29 June, 10:35

If the reserve rate is 3% and a bank receives a deposit of 16,000 how much of the 16,000 is the bank free to loan out?

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  1. 29 June, 12:48
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    that means the bank keeps 3% and can loan out 97% of the total

    16000*0.97 = $15,520 can be loaned out
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