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Cash reserves often refers to the amount of money kept on hand for short term spending or in case of an emergency. It can also refer to a short-term liquid investment with a low return rate.

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11y ago

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Related Questions

What are excess reserves?

They are reserves of cash more than the required amounts.


What is cash and currency not needed?

Excess Reserves


What happen to cash money?

The money will be absorbed by the Federal Reserve into its cash reserves


Are cash reserves an asset?

Yes, cash reserves are considered an asset. They represent liquid funds that a company or individual can easily access and use for various purposes, such as covering expenses, investing, or managing emergencies. In financial statements, cash reserves are typically classified as current assets because they can be quickly converted into cash or used in transactions.


What are the estimated reserves?

Not sure if this is a math/ statistics question. Reserves are assets you hold, but are not using immediately. There are oil reserves, mineral reserves (like gold reserves) and cash reserves. I think you need to rephrase the question for a proper answer.


When you borrow money from a bank where does that money come from?

When you borrow money from a bank they pull cash from the bank's reserves. This collection of cash is the net cash reserves within the bank or its network from depositors in the system.


Are banks permitted to lend all their reserves?

No. They can lend only a % of their total cash reserves. It depends on the Cash Reserve Ratio and Liquidity Ratios set by the Central Banks (Reserve Bank, Federal Reserve etc)


List and define two types of bank reserves?

Secondary Reserves- Assets that are invested in safe, marketable, short-term securities.Primary Reserves- Cash required to operate a bank.here is a third one...Excess Reserves- Capital reserves held by a bank in excess of what is required.


How is cash and currency valued?

They are valued according to the gold/foreign currency reserves with which it is backed up. These reserves are kept by central bank and they are increased when issuing new notes.


Why does the Federal Reserve require commercial banks to have reserves?

To ensure that banks maintain a minimum amount of cash to meet the cash withdrawal requirements of its customers


What will happen with TARP money when it's paid back?

The money will be absorbed by the Federal Reserve into its cash reserves.


Why might a company repay part of its share capital?

Its cash reserves exceed its requirements for the foreseeable future