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25 Cards in this Set
- Front
- Back
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a loan made on a borrower's signature, requiring no collateral
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unsecured loan
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the inability to pay one's debts as they mature
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insolvency
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a written promise to pay a stated sum of money at the end of a specified period of time to a named party
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promissory note
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an asset which has no substance or physical body such as patent rights
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intangible asset
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a collective term for amounts invested in capoital, fixed assets, or long-term securities as contrasted with funds invested in current assets
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capital investments
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the difference between the market value of collateral pledge to secure a loan and the face value of the loan
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margin
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a check, draft, ect., which is written promise to pay a stated sum of money, signed by the maker and payable on demand to the owner.
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negotiable instrument
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indebtedness, usually in long-term obligations, which is unsecured
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debenture
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the lowest interest rate on business loans, available only to a bank's largest customers
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prime rate
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interest paid both on money borrowed and on interest initially added to it
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compound interest
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the rate of return on the best investment available as an alternative to the use to which the capital involved was actually put
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opportunity cost
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a system which enables a bank to make a depositor's payments without the use of personal checks
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electronic funds transfer (EFT)
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an individual or association to whom property is given to hold in trust
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fiduciary
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the excess of current assets over current liabilities, representing the capital immediately available for continued operations of a business
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working capital
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a written agreement setting up the allocation of funds or securities by a giver to a third party for the eventual benefit of a second party
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escrow
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a gift of personal property made by a decedent in a will
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legacy
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to discharge or pay off an indebtedness; also to convert assets into cash
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liquidate
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the amount of funds in the process of collectionas represented by checks in possession of one bank but drawn on other banks
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float
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stocks, bonds, and other marketable properties which a borrower pledges as security for a loan
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collateral
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a check drawn by a bank on funds deposited to its account in another bank
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bank draft
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a legal withdrawal of the right of a mortgager to redeem his or her own property
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foreclosure
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to mortgage, to pledge stock, etc., as security for a loan
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hypothecate
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an unattended banking station that pays cash from, or recieves deposits into, an account upon use by the account holder of a bank-issued card.
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automated teller (ATM)
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The gradual reduction of a debt by means of equal periodic payments to meet current interest and principal
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amortization
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a final loan payment which is larger than the preceding regular payments
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balloon payment
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