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Words starting with "a"

In the Modern Universal Dictionary of Banking

above par: Term that indicates that the price of a security is higher than its nominal value. Opp.: premium.

absolute return (cn) (1) The return generated by an asset over a period of time. Absolute return differs from relative return because it does not compare performance with other measures (such as a benchmark). (2) Investment, which does not seek to beat a benchmark index. Often the goal is specified as a return that exceeds a money market rate by a certain amount..

abstract of title (cn) A written report summarizing the history of title transactions and conditions of title that affect a given piece of land covering the period from the present back to a date in the past. A comprehensive, but cumbersome, and somewhat obsolete, method of verifying the ownership and encumbrances of a parcel, or parcels, of real estate.

ACB Abbr. for: African Central Bank.

accelerated depression (cn) A group of methods for achieving periodic reductions in the book value of fixed assets that make larger reductions in the early periods and progressively smaller reductions in later periods. The offsetting entry is the depreciation expense.

acceleration (cn) Making demand for payment in full for a debt that has not yet matured. Usually a remedy provided in a loan document for the lender to use in the event of default by the borrower.

acceleration clause: A provision in a loan document stating that the entire amount of unpaid indebtedness owed to the lender may become immediately due and payable if the borrower defaults.

acceptance: (cn) (1) Written declaration on a bill of exchange that the latter is accepted. Acceptance of the bill of exchange must be declared, although it can also be limited to just part of the amount of the bill of exchange. The drawee of the bill of exchange is bound through acceptance to pay the latter on expiry. (2) Accepted bill of exchange. (3) Acceptance of a contract tender. Opp.: draft.

acceptance credit (cn) Short-term loan under which the bank permits the customer to draw bills up to a certain amount (credit line). The bills are then accepted and usually also discounted by the bank as agreed.

acceptance finance (cn) The financing of commercial transactions, most of which are usually import/export businesses, by using banker's acceptances.

Banker's acceptances have low credit risk because they are backed by the importer, the importer's bank, and the imported goods. Hence, BAs offer slightly higher yields than Treasuries of the same terms.

Major investors of these money market instruments naturally include money market mutual funds, and municipalities. However, as other forms of financing have become available, the secondary market for BAs has declined considerably.

What a bank charges for a BA depends not only on its own fees and commissions for creating the BA, but is also commensurate with general market yields of other money market instruments. For BAs that are ineligible as collateral for Federal Reserve loans, the Fed imposes reserve requirements on the amount of ineligible Bas – hence, ineligible BAs are discounted more, with the result that the borrower receives less money for the initial loan, but the investor receives a higher yield.

accepted cheque (cn) A cheque where the payor states "Paid Accordingly "or "Accepted" on the check that has been endorsed by the payee. The responsibility for payment is the same as that for the acceptor of a bill of exchange. If the above statement is made by the payor on the check, then the drawer and the endorsement person are freed of their responsibility. The cheque has been accepted by the payor who cannot reject the payment based on insufficient funds. The cheque could only be accepted based on the deposits or the agreed amount stated in a credit contract.

access cheque (GB) (cn) access check (US). It is a cheque that credit card issuers provide and allows credit card owners to access cash from their available line of credit.

accessions (pl n) Goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. An example is a new motor in a piece of equipment.

accessory obligation (cn) Obligation, which is incidental to another principal obligation, e.g. the obligation of a surety or lien. The accessory obligation is extinguished with the principal obligation. Opp.: non-accessory obligation: this form of security is separate from the claim it secures and therefore remains in force without the claim (e.g. a land charge).

 

  • WORD OF THE DAY

    Banking Word of the Day

    absolute return

    cn. (1) The return generated by an asset over a period of time. Absolute return differs from relative return because it does not compare performance with other measures (such as a benchmark). (2) Investment, which does not seek to beat a benchmark index. Often the goal is specified as a return that exceeds a money market rate by a certain amount)

     

    Syn: actual return, net return, pure return, total return, unconditional return, realized return, effective return, final return, overall return, true return.

     

  • GRAMMAR OF THE DAY

    Grammar Lesson of the Day

    Agriculture

    /ăg′rĭ-kŭl′chər/

    n. From Latin agri 'land' and cultura 'cultivate'. Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum Lorem Ipsum.

     

  • AGRICULTURE QUIZ

    Agriculture Quiz
     
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

     

  • AGRICULTURE QUOTES

    Agriculture Quote of the Day
     

    Quoter

    If agriculture goes wrong, nothing else will have a chance to go right.

     

     M. S. Swaminathan 1925-2023

     

     

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