#### Answer

$\frac{9xy}{16}$

#### Work Step by Step

We will separate the constants from the variables and reduce them separately before multiplying their respective reduced forms at the end. While constants can be reduced by simple division, variables will be reduced by using the rule $\frac{a^{m}}{a^{n}}=a^{m-n}$:
$\frac{18xy^{2}}{32y}$
=$\frac{18}{32}\times x \times y^{2-1}$
=$\frac{9\times2}{16\times2}\times x \times y^{1}$
=$\frac{9xy}{16}$