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- The legal reserve ratio is the minimum ratio that commercial banks must maintain in order to keep deposits with themselves1. 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 customers2. Alternatively, 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 percentage3. The required reserve ratio can be calculated by dividing the reserves by the total deposits4.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 reserve ratio is defined as the legal minimum ratio that commercial banks must maintain in order to keep deposits with themselves. The monetary multiplier equation, or money multiplier equation, can be mathematically represented as Money Multiplier = Change in total money supply/ Change in the monetary base.collegedunia.com/exams/money-multiplier-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/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/Required reserve ratio = Reserves / Total deposits = $100 million / $1,000 million = 0.1 = 10%www.omnicalculator.com/finance/reserve-ratio
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