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Solvency

• The ability of a corporation both to meet its long-term fixed expenses and to have adequate money for long-term expansion and growth.

 
 Embedded terms in definition
 Corporation
Expenses
Fixed expense
Its
 
 Referenced Terms
 Liquidity shocks: Liquidity Shocks can occur when deposit drains are unusually large. Withdrawal shocks can occur if: investors have a concern about bank's Solvency or if failure of a related bank leads to heightened concerns.

 
 Related Terms
 Short term solvency ratios

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