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Definition of Phone switching
In mutual funds, the ability to transfer shares between funds in the same family by
Liquidating an existing position and simultaneously reinstating a position in another futures
Central bank switching of government deposits between the central bank and commercial banks.
Certificates issued by a U.S. depositary bank, representing foreign
Also called a time deposit, this is a certificate issued by a bank or thrift that
Checking accounts that pay no interest and can be withdrawn upon demand.
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 transfer of funds between bank accounts through the Automated
A short-term fixed rate time deposit denominated in a currency other than the local
A federal institution that insures bank deposits.
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
A large-denomination CD, generally $1MM or more, that can be sold but
Accounts that pay interest, typically at below-market interest rates, that do not have a
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
Interest-bearing deposit at a savings institution that has a specific maturity.
Certificate of Deposit (CD)
A bank deposit that cannot be withdrawn for a specified period of time.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A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.
The process whereby the banking system transforms a dollar of reserves into several dollars of money supply.
Multiple Deposit Creation
The process whereby the money multiplier operates.
See term deposit.
An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.
See term deposit.
The direct transfer of payroll funds from the company bank account
Canadian Deposit Insurance Corporation
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.
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.
pre-authorized direct deposit
A system where funds are electronically credited to your account by a financial institution or a payroll service.
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
Asian currency units (ACUs)
Dollar deposits held in Singapore or other Asian centers.
Checks deposited by a company 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
The negative float that is created between the time when you deposit a check in your account
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
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
Federal deposit Insurance Corporation.
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
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
A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee
Organizations that invest, including insurance companies, depository institutions,
Interest rate risk
The risk that a security's value changes due to a change in interest rates. For example, a
In-house processing float
Refers to the time it takes the receiver of a check to process the payment and
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
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.
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
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
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
The percentage of different types of deposits that member banks are required to hold
Savings and Loan association
National- or state-chartered institution that accepts savings deposits and
Also called margin income, the difference between income and cost. For a depository
1) A dealer or customer who agrees to buy at another dealer's offered price is said to take that offer.
In the interbank market in Eurodollar deposits and the foreign exchange market, the value
A short put option position in which the writer does not have a corresponding short stock
Options: the security subject to being purchased or sold upon exercise of an option
In the market for Eurodollar deposits and foreign exchange, value date refers to the delivery date
Variable rate CDs
Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
An additional required deposit to bring an investor's equity account up to the initial margin
A guaranteed investment contract purchased with deposits over some future designated
Amounts held in currency and coin (commonly referred to as petty cash) and amounts on deposit in financial institutions.
A series of payments or deposits of equal size spaced evenly over
Checks already deposited that have not yet been cleared.
Dollars held on deposit in a bank outside the United States.
A privately owned, profit-seeking firm that accepts deposits and makes loans.
deposits denominated in U.S. dollars but held in banks located outside the United States, such as in Canada or France.
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
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.
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.
Cash plus deposits of the commercial banks with the central bank.
Fraction of total deposits that a commercial bank is required by the central bank to hold in the form of reserves.
Commercial banks' reserves consist of their holdings of cash and their balances in deposits with the central bank. See also foreign exchange reserves, excess reserves, required reserves, reserve requirement.
Automated Clearing House (ACH)
A banking clearinghouse that processes direct
A credit card into which a company directly deposits an employee's net pay.
Currency, coin, and funds on deposit that are available for immediate withdrawal without
A vertical storage device in which pallets can be deposited, one over the
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.
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.
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."
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