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- The actual reserve ratio formula is used to calculate the percentage of a bank's deposits that are held in reserve. The formula is derived by dividing the cash reserve maintained with the central bank by the bank deposits, and it is expressed in percentage1. Alternatively, the formula can be expressed as the dollar amount of reserve maintained with the central bank divided by the dollar amount of deposit liabilities owed by the bank to the customers2. To calculate the reserve ratio, you need to determine the total deposits, check the total reserves, and divide the reserves by the total deposits3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The calculation for a bank can be derived by dividing the cash reserve maintained with the central bank by the bank deposits, and it is expressed in percentage. Reserve Ratio Formula is represented as, Reserve Ratio = Reserve maintained with Central Bank / Bank Deposits * 100%www.wallstreetmojo.com/reserve-ratio-formula/The formula for reserve ratio is expressed as the dollar amount of reserve maintained with Central bank divided by the dollar amount of deposit liabilities owed by the bank to the customers. Mathematically, it is represented as, Reserve Ratio = Reserve Maintained with Central Bank / Deposit Liabilitieswww.educba.com/reserve-ratio-formula/
How can I compute the reserve ratio?
- Determine the total deposits.
- Check the total reserves. Check the total reserves.
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