Continuing the study of
generalized inductive limits of finite-dimensional C∗-algebras, we define a refined
notion of quasidiagonality for C∗-algebras, called inner quasidiagonality, and show
that a separable C∗-algebra is a strong NF algebra if and only if it is nuclear and
inner quasidiagonal. Many natural classes of NF algebras are strong NF, including all
simple NF algebras, all residually finite-dimensional nuclear C∗-algebras, and all
approximately subhomogeneous C∗-algebras. Examples are given of NF algebras
which are not strong NF.