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- Reserves are liquid assets held by a bank, company or government in order to meet expected future payments and/or emergency needs1. In the case of a bank, its reserves are cash and other liquid deposits held either in its vaults or with the central bank1. A reserve is also a retained earnings secured by a company to strengthen its financial position, clear debt & credits, buy fixed assets, company expansion, legal requirements, investment and other plans2. Reserve can be defined as the share of available profits that a firm decides to keep aside to meet unforeseen financial obligations3. Reserves are also an asset in a country’s balance of payments4.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.According to ft.com/lexicon, to define reserves is as follows: “Liquid assets held by a bank, company or government in order to meet expected future payments and/or emergency needs. In the case of a bank, its reserves are cash and other liquid deposits held either in its vaults or with the central bank (see reserve requirement).”marketbusinessnews.com/financial-glossary/reserv…What are Reserves? A reserve is a retained earnings secured by a company to strengthen a company’s financial position, clear debt & credits, buy fixed assets, company expansion, legal requirements, investment and other plans. These are usually done to save the cash from being used in other purposes.byjus.com/commerce/what-is-reserves/Reserve can be defined as the share of available profits that a firm decides to keep aside to meet unforeseen financial obligations.www.vedantu.com/commerce/reserveReserves are an asset in a country’s balance of payments.www.investopedia.com/terms/m/monetary-reserve.…
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