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Cardinal Principles of lending

A bank is an institution which is primarily seen as a body that accepts monetary deposits from its customers (general public), looks after their money, offer them some beneficial services such as cheque books to make payments and lends money to other public (borrowers). Now lending money to someone comes with some inherent risks especially […]

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Investment Fluctuation Reserves

Investment Fluctuation Reserves: IntroductionInvestment fluctuation reserves are the reserves built up within many accumulation-style superannuation funds. The main purpose is smoothening the year-to-year returns credited to member accounts. These reserves are established by not distributing some of the investment income when fund earnings are high. When the earnings are low, the investment reserves are then […]