Archives: Glossary Terms

hypothetical

involving or based on a suggested idea or theory : involving or based on a hypothesis : not real : imagined as an example

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Overdrafts

An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal. Basically, overdraft means that the bank allows customers to borrow a set amount of money.

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NSF

Non–sufficient funds (NSF) is the status of a checking account that does not have enough money to cover transactions. The acronym also describes the fee incurred from these checks, and colloquially, NSF checks are known as bounced checks or bad checks.

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Non-Sufficient Funds

Non–sufficient funds (NSF) is the status of a checking account that does not have enough money to cover transactions. The acronym also describes the fee incurred from these checks, and colloquially, NSF checks are known as bounced checks or bad checks.

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not-for-profit

not conducted or maintained for the purpose of making a profit – a nonprofit organization

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for-profit

established, maintained, or conducted for the purpose of making a profit

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dividends

an individual share of something distributed: such as 1. a share in a pro rata distribution (as of profits) to stockholders.  Profits are distributed to shareholders as dividends.  

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board

a group of persons having managerial, supervisory, investigatory, or advisory powers

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cooperative

an enterprise or organization owned by and operated for the benefit of those using its services

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underwriting

The process that a lender or other financial service uses to assess the creditworthiness or risk of a potential customer.

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