Business / Taxes / Reserve Requirement: The Federal Reserve requires its member banks to keep a certain percentage of their customer deposits in cash and other liquid assets in reserve at all times. The required percentage may be revised at the Fed's discretion, but it has not been changed in recent years. When a bank finds itself with excess reserves, it can lend them to other banks that may need them. These very short-term loans are known as federal funds and the interest rate the lenders charge is called the federal funds rate. That’s also the benchmark rate for many corporate and international government loans.
Requirement Noun Synonyms: requisite, prerequisite, demand, precondition, condition, qualification, stipulation, sine qua non, provision, proviso, demand, necessity, essential, desideratum, must
Requirement Verb Synonyms: need, want, demand
Reserve Verb Synonyms: reticence, (self-)restraint, (self-)control, taciturnity, aplomb, formality, coolness, aloofness, guardedness, standoffishness, remoteness, detachment
Reserve Noun Synonyms: keep or hold (back), withhold, save, set or put aside, conserve, preserve, retain, keep (to or for oneself), hold over, postpone, delay, put off, defer
Business / Finance / Federal Reserve System: The seven-member governing body of the Federal Reserve System, which is responsible for setting reserve requirements, and the discount rate, and making other key economic decisions. MORE
Science / Geology / Proven Reserves: Deposits of fossil fuels whose location and extent are known, as opposed to potential but unproved ('discovered') deposits. MORE