Bank Overdraft & Cash Credit Bank overdraft and cash credit facilities are both forms of short-term borrowing provided by financial institutions to individuals and businesses. Here’s a detailed explanation of each: 1. Bank Overdraft: i. An overdraft is a financial arrangement where a bank allows an account holder to withdraw funds from their account even… Read More »
Certificate of deposits Certificate of deposits: Certificates of Deposit (CDs) are typically recognized as assets that can be easily converted into cash. However, their liquidity might be subject to specific limitations. CDs are financial instruments issue by banks or other financial institutions that offer a fixed interest rate over a specific period of… Read More »
Considered Liquid Net Worth Considered liquid net worth refers to the portion of an individual’s or entity’s net worth that consists of assets that can readily converted into cash without significant loss in value or time delay. It represents the portion of net worth that is easily accessible and available for immediate use. Liquid… Read More »
Net Worth Liquid Net worth liquid is not widely used or recognized in the field of finance. It seems to be a combination of two separate terms “net worth” and “liquidity.” Let’s understand these terms individually: Net Worth: Net worth refers to the difference between an individual’s or entity’s total assets and total liabilities.… Read More »