Words
Acceptance
Any variety of a bill of exchange, inland bill, draft, or other financial instrument that has been accepted by the payer as a legitimate claim upon its assets but is not yet paid because the instrument has not yet matured or has not yet been presented for payment.
Accept
To agree to pay a bill of exchange, inland bill, draft, or other financial instrument according to its usance. See also sight draft, time draft.
Accounts
A record of debits and/or credits maintained by an entity in its account books.
Acquisition
The purchase, takeover, and balance sheet consolidation of one business entity by another, typically larger surviving entity.
Agency Cost
The costs incurred by a principal when its agent does not act on its behalf but rather in the agent’s own interest. See also principal‐agent problem
Agent
An entity enjoined to act on behalf of a principal in some business activity. See also agency costs, insurance agent
Amortization
The process of amortizing a loan.
Asset
Any good owned by any entity and held on its balance sheet.
APR
This stands for Annual Percentage Rate and is the interest charged on your purchases
Authorized User
A person who is issued with a credit card and has full charging privileges on the main cardholder's account, but is not responsible for the repayment of the balance on the account
Arrangement fee
A charge by a lender for setting up a loan. The fee is payable in advance and is generally applicable to mortgage loans.
Authorization
Approved transactions for which funds have been set aside. Once a transaction is transmitted through the credit card system, the un-posted amount will be replaced by an actual charge. If the charge is cancelled and not processed through the credit card system, the un-posted transaction will be removed from your account approximately 14 days after it was authorized
Annual fee
An annual fee charged by a credit card company for use of a credit card
Available Credit
Your current credit limit less your current outstanding balance and any authorized but un-posted transactions (including Temporary Authorizations).
Balance transfer
A balance transfer is the transfer of (part of) the balance (either money or credit) in an account to another account, often held at another institution
Banker
An individual engaged in banking as a private banker or as an employee of a bank.
Banking
The activities of a bank or banker such as making loans, taking deposits, and/or engaging in investment banking.
Bankruptcy
1) Generally, the condition of an entity that has negative net worth, to wit the monetary value of its liabilities exceeds the monetary value of its assets. 2) The state of an entity that has filed for protection from its creditors under a bankruptcy law.
Base Money
Any type of money that banks can count as reserves.
Benefits
1) The non‐monetary compensation of an employee, such as health insurance; 2) More generally, the utility or resources derived by an entity from some good or activity.
Borrower
Any entity that receives principal from a lender in exchange for a promise to repay the principal plus interest in the future.
Broker
To match the buyers and sellers of financial instruments in exchange for a commission.
Brokerage
An intermediary that brokers and deals.
Building and Loan Association
A type of mutual corporation that specialized in financing the construction of homes that were replaced following the Great Depression by the Savings and Loan association.
Card issuer
The bank, building society or store whose name is on your card
Chargeback
A charge-back is a transaction returned through a credit card
Cash Advance
The process for obtaining cash through your credit card.
Chip and PIN
Your unique four-figure number which you must use when you spend with your card.
Cash Withdrawal (ATM)
Use your Credit Card and your 4-digit personal identification number (PIN) at hundreds of thousands of ATMs in most countries that display the MasterCard®, Visa® or American Express® logos
Credit limit
The maximum amount you may owe through spending on the card. If you go over this limit, your card may be refused and you may also have to pay extra charges.
Credit rating
This is a scoring system that lenders issue people with to determine how credit worthy they are
Cash back
Cash rebates on purchases made on the card by the card issuer
Currency Account
This is an account that comes in any currency offered by a bank and it could be in AED, GBP, EUR, USD and many more.
Current Account
This is an account type that offers a cheque book facility and is more transactional hence the salary is credited to a current account. This account does not accrue interest in principle except for some banks who offer interest as a bonus.
Collateral
Any asset pledged for the repayment of a loan.
Collateralize
To pledge collateral for the repayment of a loan.
Commercial Bank
A type of bank that primarily makes loans, traditionally discounts, to businesses and that issues mainly checking or other transaction deposits.
Commercial Paper
A generic term for any type of short‐dated financial instrument, such as a bill of exchange, issued by a business entity.
Commission
A percentage of the sale price of an asset paid to a broker for its brokering services.
Commodity Money
Cash or media of exchange that derive their liquidity from the monetary value of the commodities, such as copper, silver, or gold, that comprises them
Consumption
1) the use, using, or using up of a good; 2) one of the major components of aggregate output (Y).
Contract
An agreement, written or oral but typically legally binding, between two or more parties specifying precise terms for the sale or exchange of one or more goods.
Conversion
The act of changing (converting) one type of asset into another.
Debit card
A debit card allows you to make purchases and withdraw cash by using funds from your bank account. These funds are automatically withdrawn from the connected account. They act as an alternative to cash and cheques.
Down payment
A partial payment made at the time of purchase, with the balance to be paid later.
Deposit Account
This is a type of account where you freeze a certain sum of money for a specific period which is agreed by yourself and the bank and on that basis, you will get interest paid to you at the end of the agreed period. This type of account can be broken before the agreed period, however, banks charge for early deposit upliftment.
Deposit
To create any variety of a deposit (n.) in a bank by placing money at its disposal or by obtaining a loan from it.
Early settlement fee
If a borrower decides to clear the balance of his of her loan earlier than expected, in most cases, the finance provider will charge a penalty fee for doing so. Such fees are applied as a means for the lender to recoup a proportion of the interest that would have been charged over the agreed term of the loan.
Entrepreneur
1) Generally, any entity that attempts to increase its utility by innovating; 2) An individual who establishes a new business entity; 3) a business entity that attempts to invent a new good, develop a new market, introduce a new method of production or distribution, discover a new source of supply, reorganize an existing industry, or engage in rent‐seeking.
Entrepreneurship
The state or condition of being an entrepreneur.
Equity
1) A share in a corporation;
2) Net worth.Equity Market
A market where equities or shares are exchanged.
Exchange
1) The process of engaging in to give one thing for another, typically money for a non‐monetary good.
2) A physical location for trading securities;Expansion
A state of the economy during which aggregate output, typically as measured by Gross Domestic Product, increases past all previous levels.
Expenditures
Money that flows out of one entity and, typically, into another.
Flat rate
Also called as fixed interest rate. This is a very simple method and hence is preferred by many. The percentage of the rate is calculated on the principal amount of the loan, and this is done for the entire time period for which the loan is taken. The interest figure along with the capital is then distributed over the entire repayment period to arrive at the amount of equated monthly installment (EMI). Though this method is very simple, its major drawback is that the impact of the repayment of the capital is not considered at all in the entire interest working.
FX rate
Foreign exchange rate - this is the % fee that the bank charges the cardholder on retail purchases internationally
Finance
The science of managing assets, including money.
Financial Crisis
A period characterized by rapid reductions in the monetary value of financial assets and the market capitalization of financial institutions and, typically, non‐financial entities as well. See also bank run, credit crunch, financial panic, stock market crash.
Financial Service
Any of a range of services related to financial instruments, derivatives, insurance, money, intermediation, or any other financial good.
Financial Statement
A generic term for any type of account of any entity’s financial condition, including balance sheets and income and cash flow statements.
Grace period
The grace period is the time during which you are allowed to pay your bill without being charged interest rate on the outstanding balance.
Gross Domestic Product (GDP)
One of the most widely used estimates of aggregate output.
Health Insurance
An insurance policy that indemnifies policyholders if a covered event, such as an illness or hospitalization, occurs while the policy is in effect.
Income
Money that is incoming, that flows into an entity
Inflation
Sustained increases in the price level.
Insurance
A mechanism for spreading risks, typically in an actuarially or scientifically sound manner, through the issuance of insurance policies.
Insurance Agent
An agent hired by an insurance company or other insurer to sell its insurance policies and to provide basic customer service
Insurance Policy
A contract specifying the terms upon which an insurer promises to indemnify the policyholder or insured for some loss.
Interest
1) The opportunity cost of money; 2) a rental charge for the use of money.
Interest‐Only Loan
A loan in which the borrower repays no principal, only interest, forever (perpetuity) or for some pre‐specified period
Interest Rate
1) The interest (promised or received) over some period, typically a year, divided by the principal of a bond or other loan, generally expressed as a percentage; 2) Yield. See also rate of return
Investment
1) An asset purchased by an investor with the aim of earning a profit; 2) A major component of aggregate output that measures purchases of machines, factories, and inventory by businesses.
Investment Bank
A type of bank owned and/or run by investment bankers that engage in brokerage, issuance of securities, and merger and acquisition consulting.
Investment Banker
A banker primarily engaged in brokerage, issuance of securities, and merger and acquisition consulting
Investor
An entity that intends to earn a profit by buying, holding, or selling a financial instrument such as a bond or equity.
Ledger
A type of double‐entry account book that tracks transactions by category first, then chronologically within each category.
Legal Tender
1) an obligation created and enforced by governments on entities to accept a specific medium of exchange at its face value in either a) all debts public and private (full tender) or b) all public debts (public tender); 2) Any medium of exchange that enjoys full legal tender status. See also fiat money
Lender
Any entity that provides principal to a borrower in exchange for repayment of the principal plus interest in the future
Liabilities
Anything owed by one entity to another
Life Insurance
An insurance policy that indemnifies a policyholder or beneficiary if a covered event, such as the death of the insured, occurs when the policy is in effect
Limited Liability
A common feature in charters that protects stockholders’ personal wealth in the event of the corporation’s bankruptcy.
Loan
A type of contract whereby a borrower promises to repay to a lender the principal sum borrowed plus interest.
Late payment fee
It is fee charged by the issuing institution for late payment of your outstanding balance on your card or load
Main cardholder
The person responsible for the repayment of the account balance. This person is listed first on the account.
Minimum payment
The amount you must pay each month to keep your account in order.
Minimum salary
The minimum salary requirement by the finance provider to apply for a product. This may vary on whether you transfer your salary to the issuer
Maximum loan amount
Describes the maximum amount that a borrower can borrow from a financial institution for a specific program, i.e. Personal Finance or Vehicle Finance and so on.
Minimum Balance
This is the minimum balance required to maintain a relationship with the bank. Usually banks charge you a fee if the required balance is not maintained in a given month.
Monthly Fee
This is a fee taken by a bank against a set of services provided or it can be a fee paid only based on not meeting the minimum balance required for the account.
Other Fees
This relates to any fees which are not linked to the monthly account fee. So it will relate to ATM fees, Transfe*r fees, Teller fees or any other fee type.
Payment Due Date
The date on which your next payment is due. At least your minimum payment must be cleared onto your account before this date to remain in compliance with your Credit Card Agreement. Accounts with payments received after the due date may be subject to late fees.
Reducing rate
The interest rate is charged only on the outstanding amount of a loan. In this case the interest rate is higher than the flat rate. Every month when the EMI results in a payment the capital portion is deducted from the total loan taken and then the remaining amount is charged an interest at the applicable rate. In this way, there is a gradual reduction of the capital and consequently of the base on which the entire interest working is done.
Repayments
It is the payment of a debt or obligation and is usually referred to when a lender has a specific timeline to complete the payments which is in number of months or years dependent on the type of finance.
Relationship Manager
This is a service provided to a certain customer profile on the basis of having a dedicated person to guide and assist in all banking services be it transactional or investment.
Reducing balance loan
Interest is calculated on a reducing balance. That means that the principal is reduced every year/month and interest is calculated on the outstanding balance at the end of the year/month
Statement
Your monthly credit card bill that shows what you've spent, what you owe, the minimum you must pay and the latest date you can pay it.
Salary transfer
The deposit of your salary from your employer to the institution
Statement date
The last day of your monthly statement period. After the closing date, your statement will be generated, and future activity will appear on your next month's statement.
Supplementary card
You can request for a supplementary card for another member of your family which will share your credit limit and you will responsible for all payments on the card
Savings Account
This type of account offers you interest on the amount available in the account and gives you the flexibility to move funds at anytime without being charged for transferring the funds out of the account. However, this account does not offer a chequebook facility.
Terms and conditions
These are the terms of the contract signed between you and the issuing institution
Transaction date
The date goods and services are purchased, or the date a cash advance is made.
Travel insurance
Covers you for cancellation, medical care and loss of possessions while on holiday
Underwriting
Where an insurance company takes into account known facts like your age, sex and health, in order to assess the likelihood of you making a claim on the policy
Unsecured
A loan where no collateral or security is given or charged to the lender. Unsecured lending is viewed as higher risk than secured lending and interest rates are generally higher to reflect this.
Valuation
Carried out by a professional surveyor to establish how much a property is worth and whether it is suitable to lend a mortgage on