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- The legal reserve ratio formula is 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 customers1. Mathematically, it is represented as: Reserve Ratio = Reserve Maintained with Central Bank / Deposit Liabilities1. Another related formula is the Money Multiplier, which is calculated as 1/LRR or 1/r, where LRR denotes the legal reserve ratio2.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 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 formula of the Money Multiplier is 1/LRR or 1/r = Money Multiplier, where LRR denotes the legal reserve ratio.byjusexamprep.com/upsc-exam/what-is-the-relatio…
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