- abandonment costs
- absorbtion approach
- accelerated depreciation
- accession rate
- accumulated depreciation
- acid-test ratio
- adjustable peg system
- administered pricing
- administrative costs
- ad varolem
- advertising elasticity of demand
- advertising-to-sales ratio
- age-earnings profile
- age of inventory
- aggregate demand
- aggregate output
- aggregate supply
- agricultural economics
- agricultural policy
- agricultural subsidies
- amortization
- announcement effect
- annual meeting
- annual report
- anti-dumping
- anti-trust laws
- applied economics
- appropriation
- a priori
- arbitrage
- asset
- asset management
- audit
- austrian school
- autarky
- average cost pricing
- balanced budget
- balance of payments
- balance of trade
- balance sheet
- bank failure
- bank money
- bank reserves
- bankruptcy
- barriers to entry
- barter
- bear
- beggar-thy-neighbor
- behavioral economics
- beta coefficient (β)
- bill-of-lading
- bill-of-sale
- black economy
- black market
- blue chips
- blue-collar workers
- board-of-directors
- bond
- bond market
- bond prices
- bond ratings
- book value
- boom
- bourgeoise
- bretton woods agreement
- budget deficit
- budget surplus
- bull
- bust
- by-product
- callable bond
- call option
- cambridge school
- capacity utilization
- capital
- capital asset
- capital intensive
- capitalism
- capitalization
- capital-labor ratio
- capital market
- cartel
- cash flow
- casual employment
- central bank
- certificate of deposit
- certified public accountant
- c.i.f. (cost, insurance, & freight)
- common stock
- communism
- conglomerate
- consumer behavior
- consumer economics
- consumer price index (cpi)
- consumption
- corporation
- cost
- cost-based pricing
- cost-benefit-ratio
- cost of goods sold
- creditor nation
- credit squeeze
- credit union
- currency
- currency depreciation
- currency risk
- current account
- current assets
- current liabilities
- current ratio
- customs duty
- death taxes
- debt
- debt ceiling
- debt management
- debtor nation
- debt-to-equity ratio
- default risk
- deficit spending
- deflation
- demand
- depreciation
- depression
- deregulation
- derivatives
- descriptive economics
- devaluation
- development economics
- dinar
- dirham
- discreationary income
- disinflation
- dividend
- double taxation
- dumping
- duopoly
- easy money policy
- elasticity of demand
- elasticity of supply
- equilibrium
- eurobonds
- exchange rate
- expansion costs
- exports
- export subsidies
- externalities
- face value
- factoring
- factors of production
- federal deposit insurance company (fdic)
- financial account
- financial asset
- financial risk
- financial statement
- fiscal policy
- fixed asset
- fixed costs
- fixed exchange rates
- floating exchange rates
- f.o.b. (free on board)
- forced saving
- foreign aid
- foreign direct investment (fdi)
- forward contract
- forward exchange market
- franc
- free trade
- futures
- gatt
- gold standard
- government spending
- gray-collar workers
- gross domestic product (gdp)
- gross national product (gnp)
- hedging
- heterodox-economics
- hidden inflation
- hidden unemployment
- human capital
- hyperinflation
- idle capacity
- imperfect competition
- imports
- incentive pay
- income
- income distribution
- income redistribution
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- industrialization
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- institutional economics
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- labor
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- labor-intensive
- labor-productivity
- labor economics
- leverage
- marginal cost pricing
- mark-up pricing
- monetary policy
- money supply
- monopoly
- noncurrent assets
- normal depreciation
- normative economics
- options
- oligopoly
- operating risk
- orthodox-economics
- preferred stock
- present value
- producer price index (cpi)
- proletariat
- purchasing power
- put option
- rate of return pricing
- real asset
- real gross domestic product
- recession
- regulation
- seignorage
- shutdown costs
- socialism
- statement of cash flows
- stock
- spot market
- spot price
- stock market
- supply
- swaps
- tangible asset
- target return pricing
- taxation
- tight money policy
- trade deficit
- trade surplus
- trust
- unemployment
- unfair competition
- variable costs
- white-collar workers
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Bank Reserves
Bank reserves are the legally-required minimum amount of funds a bank has deposited in its account with the central bank plus the physical amount of cash it has in its vault.
The purpose of the legal deposit requirement is to protect the account holders' funds, since banks can operate only with a very small percentage of the account holders' deposits.
The securities the bank holds are also considered secondary reserves.
Also see: bank money
Have a Say about 'Bank Reserves'?