reserve
Definition 1
In asset-based lending, the difference between the value of the collateral and the amount lent. Also, funds set aside for emergencies or other future needs. In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders. From the point of view of financial statements, reserves are provided as an estimate of liabilities that have a good probability of arising, such as bad debt reserve attempts to estimate what percentage of the firm's creditors will not pay (based on previous records and practical experience). Reserves are always a subjective estimate (since they reflect contingent liabilities).
Definition 2
Funds set aside for emergencies or other future needs.
Definition 3
In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders.
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Related Terms
bad debt reserve, Federal Reserve System, Federal Reserve Bank, Federal funds, borrowed reserves, cash reserves, contingency fund, customer protection rule, draining reserves, multiplier effect, run, self insurance, valuation reserve, fractional reserve banking
'reserve
' appears in the definitions of these terms on BusinessDictionary.comrevaluation reserve, debt service fund, dividend equalization reserve, insurance company rating, key currency, and 
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