Meaning DRAINING RESERVES: Federal Reserve System's course of action to tighten the money supply by (1) raising a bank's minimum reserve requirements, (2) selling bonds in the open market, (3) raising the rate at which banks borrow from the Fed
More terms such as Draining reserves in Dictionary D.
- Definition Debt Leverage:
- Examples Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money draining reserves definition.
- Definition Dollar Shortage:
- Examples Results when a nation importing U.S. goods cannot pay for them without the aid of the United States draining reserves explain.
- Definition Devaluation:
- Examples A decrease in the spot price of a currency. Often initiated by a government announcement draining reserves what is.
- Definition Distribution Stock:
- Examples A small amount of a specific stock that forms part of a larger block of stock that is sold small amount by small amount so as not to disrupt the stock's market price draining reserves meaning.
- Definition Defined Benefit Plan:
- Examples obliging the sponsor to make specified dollar payments to qualifying employees. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan draining reserves abbreviation.