Reserves
ri-ZERVZ
/rɪˈzɜːrvz/
A supply of a commodity or money kept available for future use.
In finance, often refers to foreign currency reserves held by a central bank to influence exchange rates or meet international obligations.
The story behind the word. The word 'reserve' comes from the Latin 're-' (meaning 'back') and 'servare' (meaning 'to keep' or 'to save'). So, to 'reserve' something is literally 'to keep it back' or 'to save it for later.' In finance, these are the funds or assets that a country or institution 'keeps back' for future needs or emergencies.
Word relationships
- stockpile: Often implies a larger, more physical collection of goods.
- hoard: Can carry a negative connotation of excessive accumulation.
Commonly confused with
- Savings: Savings are typically personal funds set aside, while reserves are often institutional and strategic.
Word family
- reserve (verb): to keep back or set aside for future use or for a special purpose.
- reserved (adjective): kept for a particular purpose or person.
Collocations
- foreign exchange reserves
- cash reserves
- gold reserves
- oil reserves
- monetary reserves
Idioms & expressions
- in reserve
Example sentences
- "The central bank used its foreign currency reserves to intervene in the market and support the local currency." Discussing national finances.
- "Companies often keep cash reserves to cover unexpected expenses or investment opportunities." Referring to corporate finance.
Memory hook
Think of a 'RESERVE' parachute, kept 'RE' (back) and 'SERVED' (saved) for an emergency. RESERVES are funds kept back for future use. Kept back
When not to use
Do not use 'reserves' for money that is actively being spent or invested; it implies money set aside.
Fun facts
- Central banks' foreign exchange reserves are primarily held in major currencies like the US dollar, Euro, and Japanese Yen, as well as gold.
Related words
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