by Ryan February 1, 2004
(FINANCE) the amount of bank reserves that a bank must keep in storage to meet unexpected liabilities.
Banks are not allowed to lend out 100% of the money they receive as deposits; if they did, then depositors would be unable to take money out of the bank. On the other hand, the bank has to lend most of the money out, since it needs the income earned from interest on loans. Throughout the history of the Usonian banking system, the US states or the federal government have had rules about interest rates, reserves, and financial accounting used by banks.
Reserve requirements are necessary to mitigate the risk of bank runs; this was thought to have disappeared thanks to deposit insurance, but Washington Mutual experienced a bank run in 2008 that forced it into receivership.
Banks are not allowed to lend out 100% of the money they receive as deposits; if they did, then depositors would be unable to take money out of the bank. On the other hand, the bank has to lend most of the money out, since it needs the income earned from interest on loans. Throughout the history of the Usonian banking system, the US states or the federal government have had rules about interest rates, reserves, and financial accounting used by banks.
Reserve requirements are necessary to mitigate the risk of bank runs; this was thought to have disappeared thanks to deposit insurance, but Washington Mutual experienced a bank run in 2008 that forced it into receivership.
In the USA, reserves have been set by law for centuries; as a percentage of liabilities, this percentage has declined over the centuries to its current level of 3-10% (as of 1992). In the Eurozone, this rate is 2%; in Japan, it is about 1.5%; and in Commonwealth countries like the UK & Canada, it is voluntary--there are no reserve requirements.
by Abu Yahya September 3, 2010
by TaskFailedSuccessfully November 24, 2022
A class required by the higher education system. It assists no one in the completion of any type of degree. The knowledge is forgotten once the class is complete and the money you spent on it is wasted because the class benifits no one at all.
College Student 1: "Hey man what liberal education requirement class are you taking?"
College Student 2: "I'm taking a chemistry lab because when I get my accounting degree I'll have to mix chemicals....a lot."
College Student 1: "I would rather just throw the money into my toilet and flush it down then take these ridiculous classes."
College Student 2: "I'm taking a chemistry lab because when I get my accounting degree I'll have to mix chemicals....a lot."
College Student 1: "I would rather just throw the money into my toilet and flush it down then take these ridiculous classes."
by T. Tom November 19, 2007
A strongly needed requirement that would formally require a US Presidential candidate to have an IQ of at least 85.
by Dr Bunnygirl November 21, 2019
I require nutrients is a hilarious image on the internet depicting a black woman with semen all over her entire head, with a monstrous look on her face. The reason that this is such a funny image is because of the caption reading "i require nutrients," which compliments the savage look on her face.
by Cheeowr September 3, 2009
Someone with high society genes meets at least 7 of these requirements:
1) Natuarally straight teeth (no braces)
2) No acne (at the most a very little amount in HS)
3) Be of atleast 50% Dutch, French, or English Descent.
4) Skinny throughout life with little fitness.
5) Complete records of your Ethnic Background.
6) No family criminal records.
7) Straight, Roman, or Prominent Nose
8) Chin is either more underbite than overbite (Lockjaw or Austrian Habsburg Jaw) or even. Overbite=Whitetrash
9) Drink for the most part Wine, or expensive liquor (rarely beer)
10) Have a Prominent family name-NOT SMITH OR JOHNSON- and be related to someone famous.
1) Natuarally straight teeth (no braces)
2) No acne (at the most a very little amount in HS)
3) Be of atleast 50% Dutch, French, or English Descent.
4) Skinny throughout life with little fitness.
5) Complete records of your Ethnic Background.
6) No family criminal records.
7) Straight, Roman, or Prominent Nose
8) Chin is either more underbite than overbite (Lockjaw or Austrian Habsburg Jaw) or even. Overbite=Whitetrash
9) Drink for the most part Wine, or expensive liquor (rarely beer)
10) Have a Prominent family name-NOT SMITH OR JOHNSON- and be related to someone famous.
by classyman4346 September 17, 2010