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25 Cards in this Set

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