Secondary reserves


Reserves held by depository institutions in excess of those mandated by reserve requirements. These reserves are often held in the form of assets that can be quickly and easily converted to cash and are used to meet unanticipated obligations.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day


An entity that stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). Individual or firm acting as a principal in a... Read More

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