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Financial Terms | |
eurodollars |
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Definition of eurodollarseurodollarsDollars held on deposit in a bank outside the United States. EurodollarsDeposits denominated in U.S. dollars but held in banks located outside the United States, such as in Canada or France.
Related Terms:Either/or facilityAn agreement permitting a bank customer to borrow either domestic dollars from the Neutral periodIn the Euromarket, a period over which eurodollars are sold is said to be neutral if it does not PlacementA bank depositing eurodollars with (selling eurodollars to) another bank is often said to be Regulation MFed regulation currently requiring member banks to hold reserves against their net borrowings Either-way marketIn the interbank Eurodollar deposit market, an either-way market is one in which the bid International Banking Facility (IBF)International Banking facility. A branch that an American bank ![]() Multi-option financing facilityA syndicated confirmed credit line with attached options. Note issuance facility (NIF)An agreement by which a syndicate of banks indicates a willingness to accept Personal Overdraft FacilityA loan facility on a customers account at a financial institution allowing the customer to overdraw up to a certain agreed limit for an agreed period. Swingline facilityBank borrowing facility to provide finance while the firm replaces U.S. commercial paper ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Agency bankA form of organization commonly used by foreign banks to enter the U.S. market. An agency All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production ![]() American Depositary Receipts (ADRs)Certificates issued by a U.S. depositary bank, representing foreign applied overheadthe amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Back officeBrokerage house clerical operations that support, but do not include, the trading of stocks and BAN (Bank anticipation notes)Notes issued by States and municipalities to obtain interim financing for BankMoney in a bank cheque account, the difference between receipts and payments. Bank collection floatThe 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. Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bank draftA draft addressed to a bank. bank draftA guaranteed form of payment which is issued in amounts over $5,000. Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which ![]() Bank lineLine of credit granted by a bank to a customer. Bank overdraftMoney owed to the bank in a cheque account where payments exceed receipts. Bank reconciliationThe process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree. Bank reconciliationA comparison between the cash position recorded on a company’s Bank wireA computer message system linking major banks. It is used not for effecting payments, but as a Banker's acceptanceA short-term credit investment created by a non-financial firm and guaranteed by a Bankers AcceptancesA 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. BankruptcyState of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from bankruptcyThe reorganization or liquidation of a firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Bond agreementA contract for privately placed debt. BorrowTo obtain or receive money on loan with the promise or understanding that it will be repaid. Borrower (Credit Insurance)A consumer who borrows money from a lender. Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be Bretton Woods AgreementAn agreement signed by the original United Nations members in 1944 that Buy/Sell AgreementThis is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement. Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). Canada Savings BondsA bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value. Canadian Deposit Insurance CorporationBetter known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds. Cash deficiency agreementAn agreement to invest cash in a project to the extent required to cover any cash Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. Certificate of deposit (CD)Also called a time deposit, this is a certificate issued by a bank or thrift that Certificate of Deposit (CD)A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit. chief financial officer (CFO)officer who oversees the treasurer and controller and sets overall financial strategy. Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value co-borrowerA co-borrower is the secondary borrower on a borrowing account. The primary borrower will receive mailed monthly statements while the co-borrower has the option to choose whether or not he/she will also receive statements. Commercial BankA privately owned, profit-seeking firm that accepts deposits and makes loans. ComponentRaw materials or subassemblies used to make either finished goods concentration bankingSystem whereby customers make payments to a regional collection center which transfers funds to Concession agreementAn understanding between a company and the host government that specifies the Conditional Sale AgreementAn agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands. Confidentiality AgreementA legal document whereby the one party, usually the prospective investor, pledges to keep strictly confidential, and return on request, any and all information provided by the entrepreneur seeking funding. Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Constant dollarsSee real dollars. Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned Current DollarsA variable like GDP is measured in current dollars if each year's value is measured in prices prevailing during that year. In contrast, when measured in real or constant dollars, each year's value is measured in a base year's prices. Demand DepositA bank deposit that can be withdrawn on demand, such as a deposit in a checking account. Demand depositsChecking accounts that pay no interest and can be withdrawn upon demand. Deposit CreationThe process whereby the banking system transforms a dollar of reserves into several dollars of money supply. Deposit SwitchingCentral bank switching of government deposits between the central bank and commercial banks. Depository transfer check (DTC)Check made out directly by a local bank to a particular firm or person. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Direct DepositThe direct transfer of payroll funds from the company bank account direct depositA system where funds are electronically credited to your account by a financial institution or a payroll service. For example, you can arrange with your employer to have your pay cheques automatically deposited into your no fee bank account. Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for Domestic marketPart of a nation's internal market representing the mechanisms for issuing and trading Double-tax agreementagreement between two countries that taxes paid abroad can be offset against Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. economic components modelAbrams’ model for calculating DLOM based on the interaction of discounts from four economic components. Electronic depository transfersThe transfer of funds between bank accounts through the Automated Eligible bankers' acceptancesIn the BA market, an acceptance may be referred to as eligible because it is Equity contribution agreementAn agreement to contribute equity to a project under certain specified EurobankA bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans. Eurocurrency depositA short-term fixed rate time deposit denominated in a currency other than the local European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Export-Import Bank (Ex-Im Bank)The U.S. federal government agency that extends trade credits to U.S. Factory overheadAll the costs incurred during the manufacturing process, minus the Federal Deposit Insurance Corporation (FDIC)A federal institution that insures bank deposits. Federal Financing BankA federal institution that lends to a wide array of federal credit agencies funds it Federal Home Loan BanksThe institutions that regulate and lend to savings and loan associations. The Federal Reserve BanksThe twelve district banks in the Federal Reserve System. Fiat MoneyFiat Money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat money is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category. Fiscal agency agreementAn alternative to a bond trust deed. Unlike the trustee, the fiscal agent acts as an Fixed overheadThat portion of total overhead costs which remains constant in size fixed overhead spending variancethe difference between the total actual fixed overhead and budgeted fixed overhead; fixed overhead volume variancesee volume variance Foreign banking marketThat portion of domestic bank loans supplied to foreigners for use abroad. Foreign bondA bond issued on the domestic capital market of anther company. Foreign bond marketThat portion of the domestic bond market that represents issues floated by foreign Foreign Corrupt Practices Act (FCPA)a law passed by U.S. Congress in 1977 that makes it illegal for a U.S. company to engage in various “questionable” foreign payments and Foreign currencyforeign money. Foreign currency optionAn option that conveys the right to buy or sell a specified amount of foreign Foreign currency translationThe process of restating foreign currency accounts of subsidiaries into the Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with Foreign equity marketThat portion of the domestic equity market that represents issues floated by foreign companies. Foreign exchangeCurrency from another country. Foreign ExchangeThe currency of a foreign country. Foreign exchange controlsVarious forms of controls imposed by a government on the purchase/sale of Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |