Federal Funds Rate
Updated Feb 14, 2023By Melissa Cook
The Federal Funds Rate is the interest rate at which banks and other depository institutions lend or borrow money to each other overnight on an uncollateralized basis...
Read MoreExtinguishment of Debt
Updated Feb 14, 2023By Melissa Cook
Extinguishment of debt refers to the termination or cancellation of a debt obligation. This means that the borrower is no longer obligated to repay the debt, and the lender no longer has a claim on...
Read MoreSecured Debt
Updated Feb 14, 2023By Melissa Cook
Secured debt refers to a type of debt that is backed by collateral, which serves as security for the loan. This means that the lender has a claim on a specific asset or group of...
Read MoreUnsecured Debt
Updated Feb 14, 2023By Melissa Cook
Unsecured debt refers to a loan or debt that is not backed by collateral. Unlike secured debt, where the borrower provides collateral, such as property or assets, to secure the loan...
Read MoreAccrued Interest
Updated Feb 14, 2023By Melissa Cook
Accrued interest refers to the interest that accumulates on a debt instrument such as a bond, loan or savings account, over a specified period of time. It represents the growth in...
Read MoreInternal Revenue Service (IRS)
Updated Feb 14, 2023By Melissa Cook
The Internal Revenue Service (IRS) is a U.S. government agency that is responsible for the collection of taxes and enforcement of tax laws. The IRS is part of the Department of the Treasury and...
Read MoreDebt Financing
Updated Feb 14, 2023By Melissa Cook
The borrower (i.e. the company) promises to repay the lender (e.g. a bank) with interest over a set period of time. Unlike equity financing, where the lender receives ownership in the...
Read MoreUnsecured Loan
Updated Jan 30, 2023By Melissa Cook
An unsecured loan is a loan that is not backed by collateral. This means that the lender does not have a claim to any specific assets of the borrower in the event of default...
Read MoreInsolvency
Updated Jan 30, 2023By Melissa Cook
Insolvency refers to the state of being unable to pay debts as they come due. It is a financial term that is often used to describe a company or individual that is facing financial...
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