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Definition of Bank line
line of credit granted by a bank to a customer.
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
Commercial paper backed by normal bank lines plus a letter of credit from a
A bank line of credit on which the customer pays a commitment fee and can take
A line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis.
A bank machine, sometimes referred to as an automated teller machine (ATM).
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
Notes issued by states and municipalities to obtain interim financing for
Money in a bank cheque account, the difference between receipts and payments.
The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
A convention used for quoting bids and offers for treasury bills in terms of annualized
A draft addressed to a bank.
A guaranteed form of payment which is issued in amounts over $5,000.
An international bank headquartered in Basel, Switzerland, which
Money owed to the bank in a cheque account where payments exceed receipts.
The process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree.
A comparison between the cash position recorded on a company’s
A computer message system linking major banks. It is used not for effecting payments, but as a
A short-term credit investment created by a non-financial firm and guaranteed by a
A bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The reorganization or liquidation of a firm that cannot pay its debts.
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
A commonly used term that refers to the net income (profit)
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
Cash flow time-line
line depicting the operating activities and cash flows for a firm over a particular period.
A public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority.
The market model applied to a single security. The slope of the line is a security's beta.
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
A privately owned, profit-seeking firm that accepts deposits and makes loans.
System whereby customers make payments to a regional collection center which transfers funds to
A merchant banking subsidiary set up by several banks that may or may not be of the
Eligible bankers' acceptances
In the BA market, an acceptance may be referred to as eligible because it is
lines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies.
A bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans.
Export-Import Bank (Ex-Im Bank)
The U.S. federal government agency that extends trade credits to U.S.
Federal Financing Bank
A federal institution that lends to a wide array of federal credit agencies funds it
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Federal Reserve Banks
The twelve district banks in the Federal Reserve System.
Foreign banking market
That portion of domestic bank loans supplied to foreigners for use abroad.
Formalized Line of Credit
A contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year.
Fractional Reserve Banking
A banking system in which banks hold only a fraction of their outstanding deposits in cash or on deposit with the central bank.
International Bank for Reconstruction and Development - IBRD or World Bank
International bank for Reconstruction and Development makes loans at nearly conventional terms to countries for projects of high
International Banking Facility (IBF)
International banking Facility. A branch that an American bank
Financial intermediaries who perform a variety of services, including aiding in the sale of
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
A legal proceeding for liquidating or reorganizing a business.
an employee who is directly responsible for
Generic types of assets, liabilities, income or expense that are common to all businesses and
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan
line of credit
Agreement by a bank that a company may borrow at any time up to an established limit.
Line of Credit
An agreement negotiated between a borrower and a lender which establishes the maximum amount against which a borrower may draw. The agreement also sets out other conditions, such as how and when money borrowed against the line of credit is to be repaid.
line of credit
A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a line of credit permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use.
Technique for finding the maximum value of some equation subject to stated linear constraints.
a method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost
A statistical technique for fitting a straight line to a set of data points.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
Management Accounting Guidelines (MAGs)
pronouncements of the Society of Management Accountants of
A British term for a bank that specializes not in lending out its own funds, but in providing
A financial institution that engages in investment banking functions, such as advising clients in mergers and acquisitions, underwriting securities and taking debt or equity positions.
Money center banks
banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.
The period from the taking of applications from prospective mortgage borrowers to the
The risk associated with taking applications from prospective mortgage borrowers
net income (also called the bottom line, earnings, net earnings, and net
Factoring arrangement that provides collection, insurance, and finance for accounts receivable.
online bill payment
The electronic payment of a bill via the Internet. The specified amount of the bill is electronically debited from your account.
Operating Line of Credit
A bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year.
Other-than-Temporary Decline in Market Value
The standard used to describe a decline in market value that is not expected to recover. The use of the other-than-temporary description as
Personal Line of credit (Credit Insurance)
A bank's commitment to make loans to a borrower up to a specified maximum during a specific period, usually one year.
personal line of credit (PLC)
A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a PLC permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use.
PIBOR (Paris Interbank Offer Rate)
The deposit rate on interbank transactions in the Eurocurrency market
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
product line margin
see segment margin
an inventory ordering system in which a red
any line that goes through the means (or averages) of the set of observations for an independent variable and its dependent variables; mathematically, there is a line of “best fit,” which is the least squares regression line
secured loan or line of credit
A lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of
Security market line
line representing the relationship between expected return and market risk.
Security Market Line
A graph illustrating the equilibrium relationship between the
security market line
Relationship between expected return and beta.
Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.
Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and
Society for Worldwide Interbank Financial Telecommunications (SWIFT)
A dedicated computer network to support funds transfer messages internationally between over 900 member banks worldwide.
A method of depreciation.
Straight line depreciation
An equal dollar amount of depreciation in each accounting period.
A depreciation method that depreciates an asset the same amount for each year of its estimated
This depreciation method allocates a uniform
Constant depreciation for each year of the asset’s accounting life.
bank borrowing facility to provide finance while the firm replaces U.S. commercial paper
representation of the amounts and timing of all
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
A multilateral development finance agency created by the 1944 Bretton Woods, New
The International bank for Reconstruction and Development, an international organization that provides long-term loans to developing countries to improve their infrastructure.
A decline in the ability or willingness of banks to lend.
Commonly sold in the form of reducing term life insurance by lending institutions, this is life insurance with a death benefit reducing to zero over a specific period of time, usually 20 to 25 years. In most instances, the cost of coverage remains level, while the death benefit continues to decline. Re-stated, the cost of this kind of insurance is actually increasing since less death benefit is paid as the outstanding mortgage balance decreases while the cost remains the same. Lending institutions are the most popular sources for this kind of coverage because it is usually sold during the purchase of a new mortgage. The untrained institution mortgage sales person often gives the impression that this is the only place mortgage insurance can be purchased but it is more efficiently purchased at a lower cost and with more flexibility, directly from traditional life insurance companies. No matter where it is purchased, the reducing term insurance death benefit reduces over a set period of years. Most consumers are up-sizing their residences, not down-sizing, so it is likely that more coverage is required as years pass, rather than less coverage.
In banking, the risk that profits may decline or losses occur because a rise in interest rates forces up
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