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zero balance account [ZBA]

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Tags: finance

a checking account which always maintains a balance of zero. Whenever the corporation needs to write a check, they transfer money into the account for the exact sum for which the check will be written, so that once the check is cashed there will once again be a balance of zero in the account. this helps the corporation avoid having money in too many different places.
(source: http://www.investorwords.com/6962/Zero_Balance_Account.html#ixzz2YdtpQHk9)

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