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Understanding Reserve Requirements Key takeaways * Reserve requirements are the portion of customer deposits banks must keep as liquid reserves and not lend out. * The Federal Reserve set U.S. reserve requirements to 0% on March 26, 2020 to boost liquidity during the COVID‑19 shock. * Lower reserve requirements free up funds for lending and…

Reserve Ratio — Definition, Calculation, and Impact The reserve ratio (or cash reserve ratio) is the percentage of a bank’s deposits that must be held as reserves rather than lent or invested. Central banks set reserve requirements to ensure liquidity, influence the money supply, and help stabilize the economy. How the Reserve Ratio Is Calculated…

Reserve Price: Meaning and How It Works in Auctions A reserve price is the minimum amount a seller is willing to accept for an item offered at auction. It protects sellers from having to part with an item for less than they consider acceptable, while still allowing the auction process to generate competitive bids. How…

Understanding Reserve Funds Definition A reserve fund is money set aside in a liquid, interest-bearing account to cover future obligations and unexpected expenses. Individuals, businesses, governments, pension plans, and community associations use reserve funds to preserve financial stability and ensure funds are available when needed. Purpose and when they’re used Reserve funds serve two primary…

Understanding Reserve Currency: The U.S. Dollar’s Global Role Key takeaways * A reserve currency is a currency held by central banks and used in international transactions to reduce exchange-rate risk. * The U.S. dollar became the dominant reserve currency after the Bretton Woods agreement and remained so after the end of dollar–gold convertibility. * The…

What is the Reserve Bank of India (RBI)? The Reserve Bank of India (RBI) is India’s central bank. Established under the Reserve Bank of India Act of 1934 and nationalized after independence, the RBI formulates and implements monetary policy, issues currency, regulates the financial system, and manages aspects of foreign exchange to support economic stability…

Research Report A research report is a document prepared by an analyst or strategist that evaluates a specific security, sector, asset class, or geographic market. In investment contexts, these reports commonly offer data, analysis, and actionable recommendations—such as buy, sell, or hold—intended to help investors make decisions. How research reports are produced Research reports come…

What is a Research Associate? A research associate is a specialist who gathers, analyzes, and synthesizes data to support investment decisions. Typically working in the research department of an investment bank, asset manager, or other financial services firm, research associates produce written analysis and models that inform traders, salespeople, portfolio managers, and institutional clients. Key…

Research and Development (R&D) Expenses Definition Research and development (R&D) expenses are the costs a company incurs to discover, design, develop, or improve products, services, technologies, or processes. R&D is typically reported as an operating expense in the period it is incurred unless specific criteria allow capitalization. Why companies invest in R&D Drive innovation and…

Research and Development (R&D) Research and development (R&D) are the organized activities companies and governments undertake to create new products, improve existing ones, or develop new processes and technologies. R&D is typically a long‑term, risk-bearing effort aimed at future competitive advantage rather than immediate profit. How R&D works R&D can be performed in-house, outsourced, or…

Research Analysts A research analyst collects, analyzes, and interprets data about companies, industries, securities, or other assets to inform investment and business decisions. Their work typically culminates in reports that summarize findings and often include recommendations such as “buy,” “sell,” or “hold.” What research analysts do Gather and clean quantitative and qualitative data from public…

Requisition: Definition, How It Works, and Key Considerations What is a requisition? A requisition is a formal request for a product, service, or action, typically made within an organization using a standardized form or digital workflow. It creates an auditable record of the request and initiates the procurement or fulfillment process. Key points * Requisitions…

Required Rate of Return (RRR) The required rate of return (RRR) is the minimum return an investor or firm expects to receive from an investment to compensate for its risk. It acts as a hurdle rate for investment decisions and equity valuation. Key takeaways RRR is the minimum acceptable return given an investment’s risk. Common…

Required Minimum Distribution (RMD): What It Is and How It Works What is an RMD? A required minimum distribution (RMD) is the minimum amount you must withdraw each year from certain tax-deferred retirement accounts to avoid an IRS penalty. RMDs apply to accounts such as traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans…

Request for Proposal (RFP): What It Is and How It Works What is an RFP? A request for proposal (RFP) is a formal document issued by an organization—public or private—to announce a project and invite qualified vendors or contractors to submit bids. RFPs describe the project goals, scope, deliverables, and the criteria and process the…

Request for Quote (RFQ) A request for quote (RFQ) is a procurement document sent to selected suppliers or contractors to obtain detailed price estimates for a defined product, service, or project. RFQs are typically used when specifications and required quantities are known and the buyer’s priority is price and standardized requirements. Key takeaways Use RFQs…

Reputational Risk What it is Reputational risk is the threat that negative perceptions—about a company’s behavior, products, employees, or partners—will harm its reputation and, as a result, its financial performance and long-term viability. In a connected world of instant communication and social media, reputational damage can occur quickly and spread widely. How reputational risk arises…

Repurchase Agreement (Repo) What is a repo? A repurchase agreement (repo) is a short-term transaction in which one party sells securities (commonly government bonds) to another party and agrees to repurchase them at a slightly higher price at a specified future time. The price difference represents an implicit interest rate—the repo rate. Economically, a repo…

Repudiation: Meaning and Key Points Key takeaways * Repudiation is when a party to a contract refuses or indicates it will not perform its contractual obligations. * It commonly arises in fixed‑income and sovereign debt contexts, but applies to any contract. * Repudiation does not automatically terminate a contract; the innocent party can either accept…

Representative sample Key takeaways A representative sample is a smaller subset selected to reflect the characteristics of a larger population. Properly chosen representative samples allow reliable inferences about the whole population. Common approaches include random, systematic, and stratified sampling; stratified sampling often produces the most accurate representation for known subgroups. What is a representative sample?…

Replacement Rate A replacement rate is the percentage of a worker’s pre-retirement income that is provided by retirement income after they retire. It’s a simple way to measure how much of your current earnings will need to be replaced to maintain your desired standard of living in retirement. Why it matters Helps you estimate how…

Replacement Cost What it is Replacement cost (or replacement value) is the current amount of money required to replace an asset — such as equipment, machinery, fixtures, or a vehicle — with a comparable item at current market prices. It reflects the cost of materials, labor, and any expenses needed to prepare the new asset…

Repayment: How It Works and What to Know Repayment is the process of returning borrowed money to a lender over time, typically through scheduled payments that cover both the principal (the amount borrowed) and interest (the fee charged for lending). Understanding repayment terms and options helps you manage debt, avoid costly consequences, and choose the…

Repatriation: Definition and Key Considerations Repatriation is the return of people, cultural objects, or capital to their country or culture of origin. In finance, it most commonly refers to converting foreign currency or offshore earnings into a home-country currency and transferring those funds back to the home jurisdiction. What Repatriation Covers People: Returning migrants, refugees,…

Repatriable: Moving Money Back to the Country of Origin Definition “Repatriable” describes financial assets or funds that can be moved from a foreign country back to an investor’s country of residence or citizenship. For currency, repatriation also involves converting the foreign currency into the home country currency, if required. An asset is repatriable only if…

Repackaging in Private Equity: What It Is and How It Works Key takeaways Repackaging occurs when a private equity (PE) firm buys all outstanding stock of a struggling public company, takes it private, and restructures it to increase value. Purchases are frequently financed with borrowed funds, making repackaging transactions typically leveraged buyouts (LBOs). Exit strategies…

Reorganization: Definition, Types, and Purpose What is a reorganization? A reorganization is a major overhaul of a struggling business intended to restore viability and profitability. It can involve operational, financial, structural, and managerial changes such as divesting or closing divisions, replacing management, cutting costs, laying off employees, recapitalizing, or changing ownership through mergers or spinoffs….

Renters Insurance: What it Is and How It Works Renters insurance is property insurance that protects people who rent a home, apartment, condominium, or room. It covers a renter’s personal belongings against covered perils (like theft or fire), provides liability protection if someone is injured in the rental unit, and often pays additional living expenses…

Understanding Rent Seeking Rent seeking is the pursuit of economic gains through political or regulatory manipulation rather than by creating new wealth or improving productivity. Instead of competing by innovating or investing, rent seekers use influence to obtain subsidies, favorable regulations, tariffs, bailouts, or other advantages that transfer value to them without increasing overall societal…

What is rent control? Rent control is a government policy that limits how much landlords can charge for renting or renewing leases. These limits are typically set by municipal or state laws and aim to keep housing affordable for low- and moderate-income renters, including elderly people on fixed incomes. Rent control is distinct from rent…

Renko Chart What is a Renko chart? A Renko chart is a price-only charting method that builds a series of bricks (or “boxes”) based on price movement rather than fixed time intervals. Each brick is plotted at a 45-degree angle from the previous brick and represents a fixed price change (the box size). Up bricks…

Renewable Resources A renewable resource is a natural material or energy source that replenishes naturally over time, allowing continued use without permanent depletion. Because they regenerate, renewable resources are central to efforts to reduce reliance on finite fossil fuels and to lower greenhouse gas emissions. Key takeaways Renewable resources include sunlight, wind, water, geothermal heat,…

Renewable Energy Certificates (RECs): What They Are and How They Work Renewable Energy Certificates (RECs) are tradable instruments that represent proof that one megawatt-hour (MWh) of electricity was generated from a renewable energy source and delivered to the grid. They separate the environmental attributes of renewable generation from the physical electricity, allowing those attributes to…

Remuneration Remuneration is the total compensation an employee receives for performing work. It includes direct monetary payments—such as salary, wages, bonuses, commissions, overtime pay, and tips—as well as certain monetary benefits and taxable allowances. Non-monetary perks (for example, free use of an on-site gym or paid vacation) typically are not counted as remuneration unless they…

What Is a Remittance? A remittance is money sent by an individual or group—often a migrant worker—back to people in another country, typically family. For many recipients in low- and middle-income countries, remittances are a crucial source of household income and can represent a significant share of national GDP. Remittances often exceed other forms of…