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reserves business definition
- The funds that are earmarked by a firm from its retained earnings for future use, such as for the payment of likely-to-be-incurred bad debts. The existence of such a reserve informs readers of the firm's financial statements that at least a part of the retained earnings will not be available to the stockholders. See also allowance for doubtful accounts, reserve for contingencies.
- In banking, currency held in vaults plus deposits at Federal Reserve banks. Also called legal reserves.
- Gold and foreign currency held by a central bank.
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