Banking

The accounting equation is a fundamental principle of financial accounting that represents the relationship between a company's assets, liabilities, and equity.

Automated Clearing House (ACH) is a network used for electronic funds transfers and payments in the United States.

An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the need for a branch representative.

Bank Identification Numbers (BIN) are the initial four to six digits on a credit, debit, or other payment card, which identify the institution that issued the card.

A bill of lading is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried.

A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals or organizations manage their money effectively.

Business-to-consumer (B2C) refers to the process where businesses sell products or services directly to consumers, bypassing any intermediary.

Customer service in finance refers to the support and assistance financial institutions provide to their clients to manage their accounts, resolve issues, and enhance their overall banking experience.

Demonetization is the act of stripping a currency unit of its status as legal tender, typically to introduce new notes or coins, or to combat inflation and corruption.

Disbursement refers to the act of paying out or distributing money, typically from a dedicated fund or account.

The discount rate is the interest rate that central banks charge commercial banks for short-term loans, influencing monetary policy and economic conditions.

A savings account set aside specifically for unexpected expenses or financial emergencies.

The European Union (EU) is a political and economic union of 27 European countries that operates a single market allowing free movement of goods, services, capital, and people.

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that insures deposits at banks and savings institutions, protecting depositors against the loss of their insured deposits if an FDIC-insured bank or savings institution fails.

The Federal Funds Rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight.

Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Instead, its value comes primarily from the public's trust in the issuer.

A financial institution (FI) is an organization that provides financial services such as deposits, loans, and investments to consumers and businesses.

Financial technology, or fintech, refers to the integration of technology into offerings by financial services companies to improve their use and delivery to consumers.

In finance, 'free' refers to any service, product, or transaction that does not require a monetary payment.

The General Data Protection Regulation (GDPR) is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in the European Union (EU).

A general ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Hyperinflation is an extremely high and typically accelerating rate of inflation, often exceeding 50% per month, which erodes the real value of the local currency, leading to a collapse in consumer confidence.

An interest rate is the percentage of principal charged by the lender for the use of its money. The interest rate on a loan or deposit determines how much you will pay or earn over time.

The International Monetary Fund (IMF) is an international organization that aims to promote global economic stability and growth by providing financial assistance, policy advice, and technical assistance to its member countries.

Interpersonal skills refer to the abilities used to interact effectively with other people. They encompass a range of competencies including communication, empathy, and conflict resolution.

A journal in accounting is a record where all financial transactions are initially recorded, using the double-entry bookkeeping system.

A Jumbo CD (Certificate of Deposit) is a type of savings account that holds a larger-than-standard amount of money and typically offers higher interest rates in return for a fixed term of deposit.

A Just In Case (JIC) fund, also known as an emergency fund, is a reserve of money set aside to cover unexpected expenses or financial emergencies.

KIPPERS refers to a situation where adult children live at home and depend financially on their parents, potentially impacting the parents' ability to save for retirement.

Kiting refers to the illegal practice of exploiting the time delay in the clearing of checks to artificially inflate bank account balances.

Know Your Client (KYC) refers to the process financial institutions use to verify the identity, suitability, and risks involved with maintaining a business relationship with a client.

The Kuwaiti Dinar (KWD) is the official currency of Kuwait, known for being one of the highest-valued currency units in the world.

A letter of credit is a financial document issued by a bank that guarantees a buyer's payment to a seller will be received on time and for the correct amount.

A leverage ratio is a financial metric used to assess a company's ability to meet its financial obligations with its available assets. It indicates the extent to which a business is using borrowed money.

A liability is a financial obligation or debt that an individual or entity owes, which must be settled in the future.

The Liquidity Coverage Ratio (LCR) is a regulatory standard that measures a bank's ability to meet its short-term obligations using highly liquid assets.

Liquidity ratios measure a company's ability to meet its short-term obligations using its most liquid assets.

LIBOR is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

Magna cum laude is a Latin term used to denote a level of academic distinction awarded to students upon graduation, signifying 'with great honor'.

Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.

Money laundering is the process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legally.

A money market account (MMA) is a type of savings account that typically offers higher interest rates in exchange for larger minimum balance requirements.

Netting is a method used in finance to consolidate or offset the value of multiple positions or payments between two or more parties to reduce the number of transactions required and manage risk.

Next of kin refers to a person's closest living blood relative or relatives who may have legal rights or responsibilities if the person becomes incapacitated or deceased.

Not-for-profit organizations are entities that do not distribute their surplus funds to owners or shareholders, but instead use them to help achieve their goals, which are often related to public benefit.

Novation is a financial process where an existing contract is replaced with a new contract, transferring the rights and obligations to a new party.

In finance, an offset refers to the process of canceling or nullifying the impact of one asset or liability by using another. It is commonly used to manage risk or reduce exposure.

Online banking, also known as internet banking, allows users to manage their bank accounts and perform financial transactions digitally via their bank's website or mobile app.

Open market operations (OMO) refer to the buying and selling of government securities in the open market by a central bank to control the money supply and influence interest rates.

Outsourcing involves contracting out business processes to external parties, often to reduce costs or improve efficiency.

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero, resulting in a negative balance.

Quantitative easing (QE) is a monetary policy used by central banks to stimulate the economy by increasing the money supply and lowering interest rates through the purchase of government securities or other financial assets.

A quasi contract is a legal concept where a court enforces an obligation between parties as if they had a contract, even though no actual contract exists, to prevent unjust enrichment.

Racketeering refers to the act of engaging in criminal activity as a structured group, often to earn illegal income or extort money through coercion, fraud, or theft.

A transaction is an agreement between a buyer and a seller to exchange goods, services, or financial assets in return for payment.

The Troubled Asset Relief Program (TARP) was a U.S. government program established in 2008 to stabilize the financial system by purchasing toxic assets and equity from financial institutions.

A trustee is an individual or organization appointed to manage assets on behalf of a third party, typically within the context of a trust.

In finance, 'free' refers to services or products provided without any direct cost to the consumer, often used as a marketing strategy to attract customers or promote other paid services.

Personal finance refers to the management of an individual's or family's financial activities, including budgeting, saving, investing, and planning for future financial needs.