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25 Cards in this Set

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