What is a reserve?

Julia Bukatova
Julia Bukatova
May 20, 2015
What is a reserve?

The term "reserve" is widely used in such areas of our life as economics, military and personnel work.

Let's take a closer look at what the reserve is in various areas of life and how to use this word correctly.

What does the word "reserve" mean

In its general meaning, the term "reserve" means a supply of something in case of special need or a source from which the forces and means of subsistence are drawn.

  • In economics, there is the term "foreign exchange reserves." It means the reserves of gold and foreign currency that the state has and which are stored in the Central Bank of the country or in special financial institutions, as well as participate in international monetary and credit operations.
  • In the banking sector, there are reserves for possible losses on loans. It is not difficult to guess that they are created in case of the implementation of credit risks. As a rule, such a reserve is created at the expense of bona fide borrowers of a bank who repay loans on time in time.
  • They talk about personnel reserves in the event that the company has employees who are able to replace a vacant position,most often superior.
  • In the military sphere there are military reserves. They include troops, people, military equipment and weapons that are not used until the moment when they can not do without them.
  • Thus, in your daily life, you will most likely use the term “reserve” in its general meaning when it comes to your stock of something of value.