Terms
- Reserves on deposit – deposit accounts at the central bank, owned by banks.
- Vault cash – reserves held as cash in bank vaults rather than being on deposit at the central bank.
- Borrowed reserves – bank reserves that were obtained by borrowing from the central bank.
- Non-borrowed reserves – bank reserves that were not obtained by borrowing from the central bank.
- Required reserves – the amount of reserves that banks are required to hold, determined by the central bank as a function of a bank's deposit liabilities.
- Excess reserves - bank reserves in excess of the reserve requirement. A portion of excess reserves (or even all of them) may be desired reserves.
- Free reserves - the amount by which excess reserves exceed borrowed reserves. (Vogel 2001:421)
- Total reserves – all bank reserves: vault cash plus reserves on deposit at the central bank, also borrowed plus non-borrowed, also required plus excess.
Read more about this topic: Bank Reserves
Famous quotes containing the word terms:
“It is not stressful circumstances, as such, that do harm to children. Rather, it is the quality of their interpersonal relationships and their transactions with the wider social and material environment that lead to behavioral, emotional, and physical health problems. If stress matters, it is in terms of how it influences the relationships that are important to the child.”
—Felton Earls (20th century)
“I’ve never been on good terms with God, but now I’m becoming His intimate, for He is truly absolute and extremely legitimate.”
—Franz Grillparzer (1791–1872)
“We can come up with a working definition of life, which is what we did for the Viking mission to Mars. We said we could think in terms of a large molecule made up of carbon compounds that can replicate, or make copies of itself, and metabolize food and energy. So that’s the thought: macrocolecule, metabolism, replication.”
—Cyril Ponnamperuma (b. 1923)