banking Flashcards
to put money into someone’s account
CREDIT
to take out money from an account
DEBIT
a computerized machine outside a bank that allows bank customers to withdraw money, check their balance, and so on
ATM(AUTOMATIC TELLER MACHINE)
a customer’s instruction to a bank to pay fixed sums of money to certain people or organizations at stated times
STANDING ORDER
an arrangement by which a customer can withdraw more from a bank account than has been deposited in it, up to an agreed limit; interest on the debt is calculated daily
OVERDRAFT
a card which guarantees payment for goods and services purchased by the cardholder, who pays back the bank or finance company at a later date
CREDIT CARD
a fixed sum of money on which interest is paid, lent for a fixed period, and usually for a specific purpose
LOAN
a loan, usually to buy property, which serves as a security for the loan; to take out a loan with a property as security
MORTGAGE
a plastic card issued to bank customers for use in cash dispensers
CASH CARD
an account that pays little or no interest, but allows the holder to withdraw cash without any restrictions
CURRENT OR CHECKING ACCOUNT
an account that pays interest, but usually cannot be used for paying cheques, and on which notice is often required to withdraw money
DEPOSIT OR SAVINGS (GB) OR TIME OR NOTICE ACCOUNT(US)
to put money in a bank or account; or money placed in a bank
DEPOSIT
the money used in countries other than one’s own
FOREIGN CURRENCIES
a record of all transactions (credits and debits) in a bank account during a particular period
BANK STATEMENT
to have a deficit in the account
IN THE RED
to have a surplus in the account
IN THE BLACK
a payment card that deducts money directly from
a consumer’s checking account to pay for a purchase.
DEBIT CARD
to take money out of your bank account
WITHDRAW
to offer securities for sale to the general public
TO ISSUE
to guarantee to buy all the new shares that a company issues, if they cannot be sold to the public
TO UNDERWRITE
to cancel a bad debt or a worthless asset from an account
TO WRITE OF
person or organization to whom money is owed (for goods or services rendered, or as a repayment of a loan)
CREDITOR
person, company or a country that has borrowed money
DEBTOR
anything that acts as a security or guarantee for a loan
COLLATERAL
failure to repay a loan at the scheduled time
DEFAULT
money paid to the lender for the use of borrowed money
INTEREST
the amount of a loan, which the borrower has to pay back when the loan matures
PRINCIPAL
available cash, or having assets that can easily be turned into cash
LIQUIDITY
the date when a loan becomes repayable
MATURITY
how much money a loan pays, expressed as a percentage; the rate of income an investor receives from security; money produced as a return on an investment
YIELD
the profits made on investments
RETURNS
having money to pay your debts at the time they must be paid
SOLVENCY
unable to pay debts or continue to do business
BANKRUPT
the act of getting control of a company by buying over 50% of its shares
TAKEOVER
when a company combines with another one
MERGER
buying and selling stocks or shares for clients
STOCKBROKING
certificates to show that someone owns stocks, shares or bonds; saleable papers, traded on the stock exchange, that yield an income (dividend, interest, etc.)
SECURITIES
the ending or relaxing of legal restrictions
DEREGULATION
a group of companies, operating in different fields, which have joined together
CONGLOMERATE
a fee charged by a bank for undertaking a transaction
COMMISSION
the difference between the interest rates that banks pay to depositors and those they charge for loans to borrowers, from which they make their profits
SPREAD OR MARGIN
banking both for individuals and companies
UNIVERSAL BANKING
banking for businesses and large organizations
INVESTMENT OR CORPORATE BANKING
transactions by non-residents in foreign currencies in tax havens such as Bermuda, the Cayman Islands, Liechtenstein, etc.
OFF-SHORE BANKING
banking for the general public
RETAIL BANKING
doing banking transactions by telephone (telephone banking) or from one’s own personal computer (internet banking)
HOME BANKING
the charge which always stays the same
FLAT RATE
the rate at which central bank makes secured loans to commercial banks; the interest rate at which central banks discount government and other sure debt instruments from commercial banks
DISCOUNT RATE
the lowest lending rate that banks charge blue-chip borrowers
BASE RATE (GB) OR PRIME RATE (US)
a company considered to be without risk
BLUE CHIP
a lender’s estimation of a company’s present and future solvency
CREDIT STANDING (CREDIT RATING OR CREDITWORTHINESS)
a bank that trades in money, receives and holds deposits, pays money according to customers’ instructions and makes loans to individuals and small companies
COMMERCIAL OR RETAIL BANK
a bank that arranges finance for industry, international trade, and offers services for rich individual and corporate clients
INVESTMENT BANK OR MERCHANT BANK
in Islamic countries and major financial centres, offer interest-free banking; banks which do not pay interest to depositors or charge interest to borrowers, but invest in companies and share profits (or losses) with their depositors
ISLAMIC BANKS
some car manufacturers, food retailers and department stores who offer products like personal loans, credit cards and insurance
NON-BANK FINANCIAL INTERMEDIARIES
a private investment fund for wealthy investors that trade in securities and derivatives and use a wider variety of (risky) investing strategies than traditional investment funds, in order to achieve higher returns whether markets go up or down
HEDGE FUND
pooling (grouping together) financial assets like mortgages, which produce a cash flow, and converting them into securities which are then sold to investors
SECURITIZATION
borrowers with poor credit ratings and consequently a high risk of default
SUBPRIME BORROWERS
a massive reduction in the amount of credit available for banks to lend to other banks, businesses and households
CREDIT CRISIS or ‘CREDIT CRUNCH’
a situation that occurs when a large number of bank or other financial institution’s customers withdraw their deposits simultaneously due to concerns about the bank’s solvency.
BANK RUN
a restraint or limitation of credit; restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth
CREDIT SQUEEZE
the price at which one currency can be exchanged for another one
EXCHANGE RATE
the cost of borrowing money, expressed as a percentage of the loan per period of time
INTEREST RATE
a rise in the general level of prices, and increase in the money supply
INFLATION
government or central bank actions concerning the control of the amount of money in circulation, for example by changing interest rates
MONETARY POLICY
the amount of money in circulation in an economy at a particular time
MONEY SUPPLY
a piece of paper money issued by a (central) bank
BANKNOTE
