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Dictionary
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Bank Run

A Bank Run is when most customers of a bank take out all their money due to fear and concern of bankruptcy. When major withdrawals take place, banks will end up using their cash reserves to pay back customers, this in turn also leads to insolvency. Panic is the driving emotion behind a bank run and can happen due to major news or rumours.

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Capital Funds

Capital Funds are the money that is provided in the form of debt/equity to enable or continue the operation of a company.

Offshore Account

An Offshore Account is a bank account outside of your origin or country of residence which holds assets and investments.

Memorandum of Understanding (MoU)

A Memorandum of Understanding (MoU) is a legally non-binding written agreement between two or more parties.

Acid Test Ratio

An Acid Test Ratio is a tool that gives an overview of a company’s ability to pay off any outstanding liabilities.