cost of funds

Definition

The interest cost that a financial institution must pay for the use of money.

Use cost of funds in a sentence

You should always know what the cost of funds are so that you can put them in your budget correctly.

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The cost of funds was very high and I thought that it might be in our best interest to keep it cheap and not go too crazy.

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My company president asked me to evaluate the cost of funds we were required to pay to our bank associated with our revolving line of credit.

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current index value carrying charge