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Reserve is a an amount set aside from the profit when it is calculated. On the other hand provision is an amount charged against profit and loss in order to assist in calculating the accurate profit.

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Difference between monetary base and money supply?

MB=CU+DEP (Currency +Deposits) MS=CU+DEP+IR (Currency + Deposits+International Reserves)


How do i find the excess reserves?

To find excess reserves, first determine a bank's total reserves, which includes both required reserves and any additional reserves held. Then, identify the required reserves, calculated as a percentage of the bank's deposits based on regulatory requirements. Subtract the required reserves from the total reserves; the remaining amount is the excess reserves. Formulaically, it can be expressed as: Excess Reserves = Total Reserves - Required Reserves.


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What is net loss reserves to surplus ratio?

The net loss reserves to surplus ratio is a financial metric used in the insurance industry to assess the adequacy of an insurer's reserves relative to its surplus. It is calculated by dividing the net loss reserves (the funds set aside to pay future claims) by the surplus (the difference between assets and liabilities). A lower ratio indicates a stronger financial position, suggesting that the insurer has sufficient surplus to cover potential claims, while a higher ratio may signal potential financial strain. Monitoring this ratio helps regulators and stakeholders gauge the insurer's risk management and financial health.

Related Questions

Difference between provision and reserve?

Provisions are charge against profit and Reserves are appropriation of profit.


What is the difference between oil reserves and oil deposits?

Oil Reserves are big and oil deposits are small.


Difference between provision for bad debt and reserve for bad debt?

Provisions and Reserves are the amount setaside out of profits. When the amount is set aside for a particular purpose it is called a provison. Examples for this is Provision for Baddebts and provision for Depreciation and Provision for Discounts on Debtors. when the amount is setaside for particular purpose is called a provision whereas Reserve is the amount setaside out of profit but not for particular purpose. In most cases provision is incorrectly described as Reserve. One cannot create Reserve for baddebts.


What is the difference between delegated reserves and concurrent powers?

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What is the difference between an accrued and a provision?

i must say accrued and provision is two different things,accrued is something paid to you but you can spend it,concerning provision is not the same.


What is difference between legal and statutory reserves?

Answer: legal and statutory reserves There is no difference. Both legal and statutory reserves are reserves that must be maintained by law. The previous answer ("Legal reserves are stipulated by law, while statutory reserves are determined in the Articles of Association (the Statute of a company)") is incorrect: the primary meaning of 'statutes' is 'enacted laws'


The difference between primary and secondary reserves?

what are the diffrence between primary reserve and secondary reserve?


What is difference between provision liability and continget liability?

A provision is when it's grater than 50% chance of happening where as a contingent is less than that. You show a provision on the accounts but not the contingent.


What is the difference between reserves and surplus?

A reserve is a planned amount, a surplus is unplanned.


What is the difference between provision and accrual?

Accrual is income earned but not received or expenses incurred but not spent. Provision is making provision from the profit for a specified or known expense which is to be met in unknown future.


Difference between provision and accrual?

Accrual - means is common word carry farword to next. provision - means is should be payable. Harisha Mundre


What is the difference between retained earnings and reserve?

Retained earnings are current year profit and Reserves are allotted the amount from last year profits as reserves.