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overfunding
overfunding (ˈəʊvəˌfʌndɪŋ) n (Economics) (in Britain) a government policy in which it sells more of its securities than would be required to finance public spending, with the object of absorbing surplus funds to curb inflation
Overfunding
Overfunding1. Describing any investment, annuity or other financial instrument containing more assets than liabilities. That is, contributions and the investment of those contributions amount to more than what the instrument owes to holders. This is considered a sign of financial health for the instrument.
2. In the United Kingdom, the practice of lending more government securities than the government is expected to need to fund its activities. The excess is used to fight inflation. |