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Definition of 'Statutory Reserves'

By: Zimbler0 in FFFT | Recommend this post (0)
Thu, 07 Nov 13 10:13 PM | 76 view(s)
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http://www.investopedia.com/terms/s/statutory-reserves.asp

Definition of 'Statutory Reserves'
State regulated reserve requirements. Insurance companies must hold a portion of their assets as either cash or marketable investments. Statutory reserves are the amount of liquid assets that firms must hold in order to remain solvent and attain partial protection against a substantial investment loss. Holding reserves reduces the risk of insurance.


(CrossPosted By: Zim.)




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