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What is the formula for reserve money?

A reserve requirement is the percentage of money deposited with a bank that must be held while the remainder may be loaned out, which increases the money supply. The reserve ratio also affects the money multiplier, which is calculated as (MM = 1/reserve ratio).

How do you calculate reserve amount?

The formula for how to calculate required reserves is relatively simple. It can be calculated by multiplying a banks total deposits by the required reserve ratio. For example, if a commercial bank has $1 million in deposits and the required reserve ratio is 10%, the bank must hold $100,000 in reserve.

How to calculate reserves for HOA?

How to calculate HOA reserve fund amounts Take inventory of the associations assets on-site. Assess the condition of assets. Predict future repairs, component lifespans, and current replacement costs. Calculate potential long-term expenses. Evaluate the status and strength of the existing reserve fund.

How do you calculate reserve estimation?

The reserve is estimated by multiplying total surface area, average thickness, and average Sp. Gr. The grade estimate is estimated by thickness weighted average grade of all drill holes.

What is a unit reserve?

Unit reserve :- this is part of the reserve that a life insurance company needs to set up in respect of its unitised contracts (the other part is the sterling reserve). The unit reserve represents its liability in terms of units under the contracts.