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Definition of Phone switching
In mutual funds, the ability to transfer shares between funds in the same family by
Central bank switching of government deposits between the central bank and commercial banks.
Liquidating an existing position and simultaneously reinstating a position in another futures
Certificates issued by a U.S. depositary bank, representing foreign
Better 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.
Also called a time deposit, this is a certificate issued by a bank or thrift that
A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit.
A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.
Checking accounts that pay no interest and can be withdrawn upon demand.
The process whereby the banking system transforms a dollar of reserves into several dollars of money supply.
Check made out directly by a local bank to a particular firm or person.
DTC is a user-owned securities depository which accepts deposits of
The direct transfer of payroll funds from the company bank account
A 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.
The transfer of funds between bank accounts through the Automated
A short-term fixed rate time deposit denominated in a currency other than the local
Federal Deposit Insurance Corporation (FDIC)
A federal institution that insures bank deposits.
International Depository Receipt (IDR)
A receipt issued by a bank as evidence of ownership of one or more
A book-entry depository for GNMA securities. The depository was initially operated by
Multiple Deposit Creation
The process whereby the money multiplier operates.
Negotiated certificate of deposit
A large-denomination CD, generally $1MM or more, that can be sold but
See term deposit.
pre-authorized direct deposit
A system where funds are electronically credited to your account by a financial institution or a payroll service.
Accounts that pay interest, typically at below-market interest rates, that do not have a
Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited
Security deposit (maintenance)
Related: Maintenance margin security market line (SML). A description of
An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.
Interest-bearing deposit at a savings institution that has a specific maturity.
See term deposit.
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
A series of payments or deposits of equal size spaced evenly over
Asian currency units (ACUs)
Dollar deposits held in Singapore or other Asian centers.
Assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris.
Automated Clearing House (ACH)
A banking clearinghouse that processes direct
Checks deposited by a company that have not yet been cleared.
Checks already deposited that have not yet been cleared.
Bank collection float
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.
The large clearing banks that dominate deposit taking and short-term lending in the domestic
Amounts held in currency and coin (commonly referred to as petty cash) and amounts on deposit in financial institutions.
Currency, coin, and funds on deposit that are available for immediate withdrawal without
Ratio of cash and cash equivalents to liabilities; in the case of a bank, the ratio of cash to total deposit liabilities.
The negative float that is created between the time when you deposit a check in your account
A privately owned, profit-seeking firm that accepts deposits and makes loans.
Corporate processing float
The time that elapses between receipt of payment from a customer and the
A put option position in which the option writer also is short the corresponding stock or has
On your bank statement, 'credit' represents funds that you have deposited into your account. The opposite of a credit is a debit.
Credit unions are community based financial co-operatives and most offer a full range of services. All are owned and controlled by members who are also shareholders. Credit unions are regulated provincially and insured by a stabilization fund, deposit insurance or guarantee corporation.
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
Dollar Cost Averaging
A way of smoothing out your investment deposits by investing regularly. Instead of making one large deposit a year into your RRSP, you make smaller regular monthly deposits. If you are buying units in a mutual fund or segregated equity fund, you would end up buying more units in the month that values were low and less units in the month that values were higher. By spreading out your purchases, you don't have to worry about buying at the right time.
EFT (electronic funds transfer)
Funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT.
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
A bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans.
The money market for borrowing and lending currencies that are held in the form of
This is an American dollar that has been deposited in a European bank or an U.S. bank branch
Dollars held on deposit in a bank outside the United States.
deposits denominated in U.S. dollars but held in banks located outside the United States, such as in Canada or France.
Federal deposit Insurance Corporation.
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
Company engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public.
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
Forward forward contract
In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to
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.
A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee
In-house processing float
Refers to the time it takes the receiver of a check to process the payment and
Organizations that invest, including insurance companies, depository institutions,
Insured Retirement Plan
This is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today."
The cost of a loan or the compensation paid for the use of money. For example, you are paid interest for deposits you make into a savings account, and you pay interest for money that you borrow from a low-cost borrowing account.
Interest rate risk
The risk that a security's value changes due to a change in interest rates. For example, a
The deposit of cash and permitted securities, as specified in the bond indenture, into an
A collection and processing service provided to firms by banks, which collect payments from a
Narrow measure of money, consisting of cash, traveller's checks, and checkable deposits.
Broad measure of money, consisting of M1 plus various deposits that are less substitutable with cash.
Maintenance margin requirement
A sum, usually smaller than -but part of the original margin, which must
This allows investors to buy securities by borrowing money from a broker. The margin is the
A demand for additional funds because of adverse price movement. Maintenance margin
Margin requirement (Options)
The amount of cash an uncovered (naked) option writer is required to
A bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of
For mutual funds, the amount required to open a new account (Minimum Initial
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.
Cash plus deposits of the commercial banks with the central bank.
Money center banks
Banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.
M1-A: Currency plus demand deposits
Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.
The margin needed to cover a specific new position. Related: Margin, security deposit (initial)
In the balance of payments, other capital is a residual category that groups all the capital
The amount by which a check or other payments exceeds the funds on deposits.
System whereby a depositor may write cheques in excess of the balance, with the bank automatically extending a loan to cover the shortage.
A credit card into which a company directly deposits an employee's net pay.
PIBOR (Paris Interbank Offer Rate)
The deposit rate on interbank transactions in the Eurocurrency market
A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be
Preauthorized checks (PACs)
hecks that are authorized by the payer in advance and are written either by
qualified investments (Canada)
Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
A vertical storage device in which pallets can be deposited, one over the
Registered Retirement Savings Plan (Canada)
Commonly referred to as an RRSP, this is a tax sheltered and tax deferred savings plan recognized by the Federal and Provincial tax authorities, whereby deposits are fully tax deductable in the year of deposit and fully taxable in the year of receipt. The ability to defer taxes on RRSP earnings allows one to save much faster than is ordinarily possible. The new rules which apply to RRSP's are that the holder of such a plan must convert it into income by the end of the year in which the holder turns age 69. The choices for conversion are to simply cash it in an pay full tax in the year of receipt, convert it to a RRIF and take a varying stream of income, paying tax on the amount received annually until the income is exhausted, or converting it into an annuity with guaranteed payments for a chosen number of years, again paying tax each year on moneys received.
Regular Investment Plan (RIP)
A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose.
Fed regulation imposing caps on the rates that banks may pay on savings and time deposits.
The dollar amounts based on reserve ratios that banks are required to keep on deposit at a Federal Reserve Bank.
Specified percentages of deposits, established by the Federal Reserve Board, that banks must
Fraction of total deposits that a commercial bank is required by the central bank to hold in the form of reserves.
The percentage of different types of deposits that member banks are required to hold
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