Question

if the reserve rate is 6% and a bank receives a deposit of 14000 how much of the 14000 is the bank free to loan out

Answer 1

the bank must set aside 6% of the deposit amount, and is free to lend out the rest.

so if they have to set aside 6%, then they can lend out 100% - 6% = 94% of the loan.

therefore, simply calculate 94% of 14,000 to find the amount able to be loaned out.