Answer:
The bank can lend $6440 from the deposit amount of $7000
Step-by-step explanation:
Given deposit amount:
$7000
Since the reserve rate is 8%, 8% of 7000 will be reserved by the bank. The bank can lend the remaining amount.
Reserved amount = 7000 * (8/100)
= $560
Amount the bank can lend = 7000-560 = $6440
The bank can lend $6440 from the deposit amount of $7000 ..
