An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.
Similar financial termsZero-balance account
A zero-balance account (ZBA) is a checking account in which zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover the checks presented.
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.
Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of a given point in time.
Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of accounts receivable) at the end of succeeding months.
Financing that is not shown as a liability in a company's balance sheet.
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Balance of trade
Net flow of goods (exports minus imports) between countries.
Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.
Also called the statement of financial condition, it is a summary of the assets, liabilities, and shareholders' equity.
Balance sheet identity
Total Assets = Total Liabilities + Total Shareholders' Equity
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.
In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account.
Original principal balance
The total amount of principal owed on a mortgage before any payments are made.