Banking
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What It Is, Examples, and How One Is Used
What Is a Letter of Credit? A letter of credit, or a credit letter, is a letter from a bank…
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Depository: Definition, Meaning, Types, and Examples
A depository is a facility such as a building, office, or warehouse in which something is deposited for storage or…
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How Do Commercial Banks Work, and Why Do They Matter?
Business banking services also include bank accounts, investments, and lending products. Commercial banks also provide their business clients with merchant…
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Definition, Components, Ratio, and How It’s Used
What Is Tier 1 Capital? Tier 1 capital refers to the core capital held in a bank’s reserves and is…
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Tier 1 Leverage Ratio: Definition, Formula, and Example
What Is the Tier 1 Leverage Ratio? The Tier 1 leverage ratio measures a bank’s core capital relative to its…
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What It Is, Different Types, and Pros and Cons
What Is a Promissory Note? A promissory note is a written promise by one party (the note’s issuer or maker)…
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Overdraft Explained: Fees, Protection, and Types
What Is an Overdraft? An overdraft occurs when there isn’t enough money in an account to cover a transaction or…
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What Is a Money Order, How Does It Work, and How Do I Get One?
What Is a Money Order? A money order is a secure alternative to cash or a personal check, which you…
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What It Is, How It Works, Benefits
What Is a Deposit Slip? A deposit slip is a small paper form that a bank customer includes when depositing…
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Definition, Membership Requirements, and vs. Banks
What Is a Credit Union? A credit union is a type of financial cooperative that provides traditional banking services. Ranging in…
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