Archives: Terms

Definition of Reserve Asset Ratio The Reserve Asset Ratio, often referred to as the Reserve Requirement, is a regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves (rather than lend out). These reserves are typically kept in the bank’s vault […]

Definition of Reservation Wage Reservation wage is defined as the minimum wage rate at which a worker is willing to accept a particular type of job. It is the threshold below which the individual prefers not to work and would rather remain unemployed. The reservation wage is influenced by various […]

Definition of Reservation Utility Reservation utility refers to the minimum level of utility or satisfaction that an individual requires to accept a particular option or alternative. It is essentially a baseline or threshold level of utility below which any option would be unacceptable to an individual. This concept is often […]

Definition of Reservation Price The reservation price is the maximum price a consumer is willing to pay for a good or service or the minimum price a seller is willing to accept. This concept is critical in economics as it reflects the value that an individual places on a product. […]

Definition of Research and Development Research and Development (R&D) refers to the activities undertaken by companies and organizations to innovate and introduce new products and services. It encompasses a systematic activity combining both basic and applied research, aimed at discovering solutions to problems or creating new goods and knowledge. This […]

Definition of Rescheduling Debt Rescheduling debt refers to the process of renegotiating the terms of an existing debt to provide more manageable repayment conditions for the debtor. This process typically involves extending the payment period, reducing the interest rate, or modifying other terms to alleviate the immediate financial pressure on […]

Definition of Resale Price Maintenance Resale Price Maintenance (RPM) is a practice whereby a manufacturer or wholesaler sets the price at which a retailer must sell their product. This can include specifying a minimum resale price or a fixed price, or providing price ceilings. RPM is often used by manufacturers […]

Definition of Required Rate of Return The Required Rate of Return (RRR) is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project. This rate serves as a benchmark for making investment decisions, reflecting the risk level […]

Definition of Reputational Policy Reputational policy refers to the strategic actions and frameworks adopted by organizations or governments to maintain and enhance their reputation in the eyes of stakeholders. This involves consistently delivering quality products or services, adhering to ethical standards, and effectively managing public relations. A strong reputational policy […]

Definition of Repressed Inflation Repressed inflation occurs when the government or another regulatory body intervenes to control or limit the price increases in an economy, typically through price controls or rationing, rather than allowing the natural market forces of supply and demand to determine prices. It masks the underlying inflationary […]