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TeachMeFinance.com - explain general reserves general reserves -- the funds that are set aside by a financial institution for the sole purpose of covering possible losses that have not yet been specifically identified. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.