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Describe How Actual Reserves Are Calculated and Explain the Difference

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Essay

Describe how actual reserves are calculated and explain the difference between desired reserves and unplanned reserves. How do reserves affect the amount of loans a bank can make?


Definitions:

Bevel Groove Weld

A type of weld used to join two pieces at an angle with a groove made at the joining edge.

Symbol

A sign or representation that stands for its object by convention, association, or resemblance.

Weld Symbol

A notation used on engineering drawings to specify the type, size, and other details of a weld, critical for manufacturing and assembly processes.

Fillet Weld

A type of weld used to join two pieces of metal at a right angle, characterized by its triangular cross-section.

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