Financial Terms: Reserves
Definition of Corporate Finance:
A liability on the balance sheet. company It is anticipated that there will be some expenditure or loss in the future, and it is estimated that the reserve should be mentioned in advance, for example, provision for bad and doubtful debts.
Contractual terminology
The reserve refers to the terms of the contract.
Terminology of commercial banks
Commercial banks store cash in cash and deposit in the central bank in proportion.
The purpose of implementing the reserve requirement is to ensure that commercial banks are in existence.
encounter
Sudden massive withdrawal of banks
deposit
At that time, there will be considerable solvency.
Insurance terminology
Insurance reserve refers to a certain amount of fund that the insurer guarantees that he or she performs the insurance compensation or payment obligation according to the relevant laws or business specific requirements of the government.
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