Banking Terminology

Question 1

ABM

Answer 1

Automated Banking Machine

Question 2

Account level charge

Answer 2

Charges against any account transactions (deposit, transfer) vary depends on bank.

Question 3

Annual fee

Answer 3

Fee charged each year on a credit card account (FIXED). There existe annual fee free

Question 4

Amortization Period

Answer 4

Time which take to repay a mortgage loan full (years) maximum 30 years

Question 5

Appraised Value

Answer 5

An estimated of the value of the property offered as security for a mortgage loan

Question 6

Assets

Answer 6

Your possesions, including property, cash, investments

Question 7

Bankrupt

Answer 7

Technically this means being insolvent or declared by law as unable to pay debts

Question 8

Cheque hold

Answer 8

A ¨hold¨ on the deposit of the cheque is placed to ensure that the financial institution on which the cheque is drawn will not return the cheque.

Question 9

Cheque certification

Answer 9

The cheque is certified as valid and ensures money is on the account

Question 10

Checking account

Answer 10

Type of account where you can access your money on demand. You must make sure you always have enough money in your chequing account to over the cheques that you have written.

Question 11

Savings account

Answer 11

This type of bank account usually pays interest on the funds deposited and provides easy access to your money although a cheque book is not provided

Question 12

Check routing number

Answer 12

0002

Question 13

Money order

Answer 13

Bank draft is an order for the payment of

Question 14

Collateral (Assets)

Answer 14

Usually property or investments used to secure a loan

Question 15

Consolidation

Answer 15

Combining more than one debt into a single loan.

Question 16

Cosigner

Answer 16

Person who signs a loan with you and shares responsibillity for repayment of the loan

Question 17

Credit Bureau

Answer 17

A clearinghouse for credit information credit grantors provide the credit bureau with information on how their credit customers pay their bills and the bureau complies linformation as a resource for credit grantors. Customers may review their own credit file at any credit bureau location. Be careful about having one credit study per year (certification)

Question 18

Credit grantor

Answer 18

another term used to describe your credit card issuer or the company has granted some form of credit to you

Question 19

Credit card

Answer 19

Such as VISA card allows the holder to charge purchases rather than pay cash

Question 20

Credit file

Answer 20

(Credit bureau report) Recor information about payment such as stores banks and credit card companies, and includes information from ¨public record¨

Question 21

Daily Interest

Answer 21

The interest calculated on a minimun or average daily account balances; usually credited to the account once a month

Question 22

Debit card

Answer 22

another name for a Bank Card that allows you to access your accounts. You can use it at banking machines or to pay for purchases at retailers using the interac. Payment service

Question 23

Deficit

Answer 23

The result of expenditures being greater than income (the opposite of surplus)

Question 24

Direct debit

Answer 24

A means of paying for goods and services with a magnetic debit card via the interac. Direct payment network, directly from your account to merchant´s account.

Question 25

Equity

Answer 25

Difference between property cost and debts

Question 26

Fixed interest rate

Answer 26

An interest rate established at the time a loan is opened and which remains unchanged for the term of the loan

Question 27

GIC

Answer 27

Guaranteed investmenet certificate (CDT)

Question 28

Guaranter

Answer 28

Guaranties to repay a loan in the event that the borrower defaults

Question 29

Interac Network

Answer 29

Aliados ABM (Extra fee)

Question 30

Lien

Answer 30

A claim on a person property as a security for an unpaid debt

Question 31

Maturity Date

Answer 31

Last day of the term of the mortgage agreement must then be renewed or the mortgage balance paid in full

Question 32

Scotiabank institution code

Answer 32

002 (for cheques)

Question 33

Coborrower

Answer 33

co-borrower shares ownership of the asset that’s tied to the loan and assumes the responsibility of payments from the start. A co-signer, on the other hand, doesn’t own the collateral that’s associated with the loan and is only liable for the loan if the primary borrower doesn’t make their payments.