Definition of Reserve

Reserve

That part of the assets of a bank or other financial institution specially kept in cash in a more or less liquid form as a reasonable provision for meeting all demands which may be made upon it;

Usually, the uninvested cash kept on hand for this purpose, called the real reserve. In Great Britain the ultimate real reserve is the gold kept on hand in the Bank of England, largely represented by the notes in hand in its own banking department; and any balance which a bank has with the Bank of England is a part of its reserve. In the United States the reserve of a national bank consists of the amount of lawful money it holds on hand against deposits, which is required by law to be not less than 15 per cent (U. S. Rev. Stat. secs. 5191, 5192), three fifths of which the banks not in a reserve city (which see) may keep deposited as balances in national banks that are in reserve cities (U. S. Rev. Stat. sec. 5192).

The amount of funds or assets necessary for a company to have at any given time to enable it, with interest and premiums paid as they shall accure, to meet all claims on the insurance then in force as they would mature according to the particular mortality table accepted. The reserve is always reckoned as a liability, and is calculated on net premiums. It is theoretically the difference between the present value of the total insurance and the present value of the future premiums on the insurance. The reserve, being an amount for which another company could, theoretically, afford to take over the insurance, is sometimes called the reinsurance fund or the self-insurance fund. For the first year upon any policy the net premium is called the initial reserve, and the balance left at the end of the year including interest is the terminal reserve. For subsequent years the initial reserve is the net premium, if any, plus the terminal reserve of the previous year. The portion of the reserve to be absorbed from the initial reserve in any year in payment of losses is sometimes called the insurance reserve, and the terminal reserve is then called the investment reserve.

In exhibitions, a distinction which indicates that the recipient will get a prize if another should be disqualified.

A resist.

A preparation used on an object being electroplated to fix the limits of the deposit.

See Army organization, above.

To keep back; to retain; not to deliver, make over, or disclose.

Hence, to keep in store for future or special use; to withhold from present use for another purpose or time; to keep; to retain.

To make an exception of; to except.

The act of reserving, or keeping back; reservation.

That which is reserved, or kept back, as for future use.

That which is excepted; exception.

Restraint of freedom in words or actions; backwardness; caution in personal behavior.

A tract of land reserved, or set apart, for a particular purpose; as, the Connecticut Reserve in Ohio, originally set apart for the school fund of Connecticut; the Clergy Reserves in Canada, for the support of the clergy.

A body of troops in the rear of an army drawn up for battle, reserved to support the other lines as occasion may require; a force or body of troops kept for an exigency.

Funds kept on hand to meet liabilities.

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Reserve Quotations

The reserve of modern assertions is sometimes pushed to extremes, in which the fear of being contradicted leads the writer to strip himself of almost all sense and meaning.
Winston Churchill

Prices are going up. Unemployment is continue to go up. And we have not had the necessary correction for the financial bubble created by our Federal Reserve system.
Ron Paul

If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.
Henry Ford

The only real security that a man can have in this world is a reserve of knowledge, experience and ability.
Henry Ford

We reserve our deepest respect and admiration for those who volunteer for service and give their lives to help keep our nation secure.
Mitt Romney

Love is a sacred reserve of energy; it is like the blood of spiritual evolution.
Pierre Teilhard de Chardin

The reason most people don't express their individuality and actually deny it, is not fear of what prime ministers think of us or the head of the federal reserve, It's what their families and their friends down at the bar are going to think of them.
David Icke

I couldn't be happier that President Bush has stood up for having served in the National Guard, because I can finally put an end to all those who questioned my motives for enlisting in the Army Reserve at the height of the Vietnam War.
Larry David

In those days, reserve duty lasted for six years, which, I might add, was three times as long as service in the regular army, although to be perfectly honest, I was unable to fulfill my entire obligation because I was taking acting classes and they said I could skip my last year.
Larry David

Even though the National Guard and Army Reserve see combat today, it rankles me that people assume it was some kind of waltz in the park back then.
Larry David