Answer:
Reserve rate = 9%
Step-by-step explanation:
Reserve ratio/rate is the percentage of deposits which commercial banks are required to keep as cash, as directed by the central banks.
first, let us calculate the reserve amount as follows:
Reserve = Deposit - (free amount to lend out)
Reserve = 28,000 - 25,480 = $2,520
[tex]Reserve\ rate = \frac{Reserves}{Deposits} \times100\\Reserve\ rate = \frac{2520}{28000} \times100\\=\frac{252000}{28000} =9\%[/tex]
Therefore the reserve rate = 9%
