Agent Bank
An agent bank is a retail outlet contracted by a financial institution or a mobile network operator to process clients’ transactions on its behalf.
Amortization
Amortization is the process of gradually paying off of a debt or loan over time through regular payments that cover both the principal amount borrowed and the accrued interest. The goal of amortization is to ensure that the borrower repays the loan in fully by the end of the loan term.Amortization is the process of gradually paying off of a debt or loan over time through regular payments that cover both the principal amount borrowed ... Read More
Annual Percentage Yield (APY)
Annual Percentage Yield (APY) measures the total amount of compound interest earned on a deposit account over one year, expressed as a percentage. The higher the APY, the more interest you will earn on your money over time.Annual Percentage Yield (APY) measures the total amount of compound interest earned on a deposit account over one year, expressed as a percentage. The higher ... Read More
Asset
An asset is anything that has current or future economic value to an owner who may be an individual or business. The asset may be sold by the owner in return for cash.An asset is anything that has current or future economic value to an owner who may be an individual or business. The asset may be ... Read More
ATM
ATM stands for “automated teller machine”. An ATM is an electronic telecommunications device that enables bank customers to perform financial transactions using a debit or credit card issued by a bank, such as withdrawing and depositing cash or obtaining account information at any time and without the need for direct interaction with a branch representative or teller.ATM stands for “automated teller machine”. An ATM is an electronic telecommunications device that enables bank customers to perform financial transactions using a debit or ... Read More
Balance Sheet
A balance sheet is a statement that summarizes the details of a company’s assets, liabilities, and shareholders’ equity at a particular point in time.A balance sheet is a statement that summarizes the details of a company’s assets, liabilities, and shareholders’ equity at a particular point in time. Read More
Bank Account
A bank account is an arrangement with a bank in which the customer deposits and withdraws money, and the bank keeps a record of the activity on the account. There are various types of bank accounts, which are usually deposit accounts or loan accounts.A bank account is an arrangement with a bank in which the customer deposits and withdraws money, and the bank keeps a record of the ... Read More
Bank Card
A bank card is a plastic card issued by a bank to its clients that performs several services that relate to giving the client access to a bank account. A bank card will usually have the client’s name, the issuer’s name, and a unique card number printed on it.A bank card is a plastic card issued by a bank to its clients that performs several services that relate to giving the client access ... Read More
Bank Statement
A bank statement, or account statement, is a document issued by a bank to an account holder showing all the transactions made on their account during a specified period, usually a month. Bank statements contain information about the account, such as the account name, account number, a detailed list of deposits and withdrawals, as well as any charges and fees incurred during the reporting period.A bank statement, or account statement, is a document issued by a bank to an account holder showing all the transactions made on their account ... Read More
Bankruptcy
Bankruptcy is a legal process through which people or other entities who are unable to repay debts to creditors may seek to be released from their debt obligations. Debtors may receive a reduction or elimination of their debts and an opportunity to negotiate a repayment plan for nondischargeable debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.Bankruptcy is a legal process through which people or other entities who are unable to repay debts to creditors may seek to be released from ... Read More
Beneficiary
A beneficiary is a person or entity that is legally appointed to receive benefits in the form of assets or funds from a particular arrangement, such as a will, trust, insurance policy, retirement fund, or any other form of financial or legal arrangement.A beneficiary is a person or entity that is legally appointed to receive benefits in the form of assets or funds from a particular arrangement, ... Read More
Bond
A Bond is a debt instrument that represents a loan made by an investor to a borrower, typically a government or a corporation. Bonds are commonly used by governments and companies to raise funds for various purposes, such as funding projects, operations, and expansions.A Bond is a debt instrument that represents a loan made by an investor to a borrower, typically a government or a corporation. Bonds are ... Read More
Budget Support
A form of financial aid provided by a donor government or financing agency directly to the national treasury of the recipient country’s government, to be used by the recipient country to finance its national budget.A form of financial aid provided by a donor government or financing agency directly to the national treasury of the recipient country’s government, to ... Read More
Business Account
Business accounts are similar to ordinary current accounts and are good for you to separate your business and personal finances. Usually, business accounts simply offer a cheque book and a paying-in book. However, they can come with a wide variety of attractive features for businesses such free business banking, interest on in-credit balances, overdrafts, preferential interest rates on loans, and fee-free transactions.Business accounts are similar to ordinary current accounts and are good for you to separate your business and personal finances. Usually, business accounts simply offer ... Read More
Central Bank
A central bank is a public financial institution with the authority to manage a country’s currency, control the circulation of money, and in some cases, ensure the country’s economic and financial stability.A central bank is a public financial institution with the authority to manage a country’s currency, control the circulation of money, and in some ... Read More
Central Bank
A central bank is a public financial institution with the authority to manage a country’s currency, control the circulation of money, and in some cases, ensure the country’s economic and financial stability.A central bank is a public financial institution with the authority to manage a country’s currency, control the circulation of money, and in some ... Read More
Certificate of Deposit
A certificate of deposit (CD) is a financial product similar to a time deposit that is offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a fixed cash amount untouched for a predetermined period of time. With CDs, banks usually offer higher interest rates than they do on accounts that can be withdrawn from on demand. Unlike savings accounts, CDs have a fixed term and usually, a fixed interest rate. A customer is expected to hold the CD to maturity, at which time they can withdraw the deposit and receive their interest payment. If a customer withdraws their CD early, they are usually required to pay a penalty.A certificate of deposit (CD) is a financial product similar to a time deposit that is offered by banks that provides an interest rate premium ... Read More
Cheque
A cheque is a document issued by an account holder instructing his/her bank to pay a specific amount of money from his/her account to the person in whose name the cheque has been issued.A cheque is a document issued by an account holder instructing his/her bank to pay a specific amount of money from his/her account ... Read More
Collateral
Collateral, or a security, is an asset or property that an individual or business offers to a lender to secure a loan. Collateral may be in the form of real estate property, motorised vehicles, household appliances, or other kinds of assets, depending on the purpose of the loan. If a borrower defaults on their debt obligation, the lender can seize the collateral and sell it to recover the loan amount.Collateral, or a security, is an asset or property that an individual or business offers to a lender to secure a loan. Collateral may be ... Read More
Compound Interest
Also “Interest on interest”, compound interest is calculated on the initial principal of a deposit or loan, which also includes all of the accumulated interest from previous periods.Also “Interest on interest”, compound interest is calculated on the initial principal of a deposit or loan, which also includes all of the accumulated interest ... Read More
Compound Interest
Compound interest is interest calculated on both the principal amount of a loan or deposit and the interest accumulated previous periods.
Comprehensive Insurance
Comprehensive insurance is a type of motor insurance that pays to replace or repair your vehicle if it's stolen or damaged in an incident that's not a collision, such as fire, theft, vandalism, or falling objects.Comprehensive insurance is a type of motor insurance that pays to replace or repair your vehicle if it's stolen or damaged in an incident that's ... Read More
Condominium
A condominium is a real estate property ownership arrangement in which each unit in a group or complex of properties is owned separately and the common areas and facilities are shared and managed by all the unit owners.A condominium is a real estate property ownership arrangement in which each unit in a group or complex of properties is owned separately and the ... Read More
Counter Transaction
Counter transactions refers to transactions conducted with a teller in a bank branch and are usually charged differently from bank account transactions. Counter transactions tend to be costly, and the associated charges often differ by account and transaction type.Counter transactions refers to transactions conducted with a teller in a bank branch and are usually charged differently from bank account transactions. Counter transactions tend ... Read More
Credit
A credit on a bank account occurs when money is added to the account. This is money that may be received from salary payments, sale of goods or services, payment refunds, or other income generating activities.A credit on a bank account occurs when money is added to the account. This is money that may be received from salary payments, sale ... Read More
Credit Card
A credit card is an electronic payment card issued by a financial institution, usually a bank, which allows the holder to make purchases on credit. Credit cards tend to have much higher interest rates compared to other types of loans because the debt issued to the holder is not backed with collateral.A credit card is an electronic payment card issued by a financial institution, usually a bank, which allows the holder to make purchases on credit. ... Read More
Credit Limit
A credit limit is the maximum amount of money that a financial institution or lender will allow someone to borrow on a loan product such as a credit card or overdraft.A credit limit is the maximum amount of money that a financial institution or lender will allow someone to borrow on a loan product such ... Read More
Cryptocurrency
A cryptocurrency is a type of digital or virtual currency that uses cryptography for secure financial transactions, control the creation of new units, and verify the transfer of assets.A cryptocurrency is a type of digital or virtual currency that uses cryptography for secure financial transactions, control the creation of new units, and verify ... Read More
Current Account
A current account is a bank account where you can easily deposit and access your money, with limited restrictions. Typically, this is the bank account you get your salary paid into, and you use in your everyday life for paying bills, rent and loan payments. However, not all current accounts are the same as every bank offers something different, ranging from monthly fees, interest earned and overdrafts.A current account is a bank account where you can easily deposit and access your money, with limited restrictions. Typically, this is the bank account ... Read More
Debit
A debit on a bank account occurs when money is removed from the account through various means such as ATM or counter withdrawals at a bank branch or using a debit card for online or point-of-sale payments.A debit on a bank account occurs when money is removed from the account through various means such as ATM or counter withdrawals at a ... Read More
Debit Card
A debit card is an electronic payment card that deducts money directly from a customer’s current account as they transact. A debit card purchase is usually made with or without a personal identification number (PIN). A debit card also allows the user to withdraw money from his or her current account through an ATM. Unlike a credit card, no interest is charged on purchases made with a debit card, and the customer’s credit history will not be affected by his or her debit card purchases.A debit card is an electronic payment card that deducts money directly from a customer’s current account as they transact. A debit card purchase ... Read More
Debt Burden
Refers to the money that an individual, company, or country owes to another in the form accumulated debt, which they may have difficulty repaying.
Debt Servicing
The act of repaying of interest and principal on a debt over a specific period.
Debtors
A debtor is a person that owes money to a type of lender such as a bank, a business, or an individual.
Deposit
A deposit is money placed in a bank account, and it can be withdrawn or transferred to another account.
Depreciation
Depreciation refers to the reduction in the monetary value of an asset over time due to use, wear-and-tear, or obsolescence.
Direct Debit
A direct debit is an arrangement that an account holder makes with a third party to transfer money from that person’s bank account on agreed date, typically to pay bills.A direct debit is an arrangement that an account holder makes with a third party to transfer money from that person’s bank account on ... Read More
Dividend
A dividend is the distribution of a share of a company's earnings to its shareholders, as determined and approved by the company's board of directors. A dividend is a payment made by a publicly-listed company as a reward to its shareholders for investing their money into the company. Dividends may be offered as cash payment, stocks or any other form.A dividend is the distribution of a share of a company's earnings to its shareholders, as determined and approved by the company's board of directors. ... Read More
Dormant Account
An account becomes dormant if its owner does not initiate any activity or transaction for a prolonged period of time.
Down Payment
A down payment is an amount of money that is paid by a borrower towards a loan or purchase of an item to secure it, that is only a portion of the total loan or cost of that item, so that the balance is paid back by the borrower over a period as specified by the lender or seller.A down payment is an amount of money that is paid by a borrower towards a loan or purchase of an item to secure it, ... Read More
Economy
An economy defines all the activities that take place in a country, region or community related to the production, consumption, and trade of goods and services.An economy defines all the activities that take place in a country, region or community related to the production, consumption, and trade of goods and ... Read More
Equity
Equity is the value of ownership in an asset, business, or investment. For accounting purposes, equity is calculated by subtracting liabilities from assets.
Exchange Rate
An exchange rate is the price that represents the value at which one currency can be exchanged for another.
Excise Duty
Excise duty is an indirect tax that is usually applied to goods at the point of production, distribution, or sale of specific products. Excise duty can be used for regulating the consumption of goods that are deemed to have certain social, health, or environmental impacts such as alcohol, tobacco, and fuel.Excise duty is an indirect tax that is usually applied to goods at the point of production, distribution, or sale of specific products. Excise duty ... Read More
Fiscal Deficit
The government budget balance where the government’s expenditure exceeds its tax revenues in a given fiscal year.
Fiscal Year
A 12-month period over which the government budgets, plans, and reports on its financial performance. Also known as a financial year and runs from July 1st to June 30th.A 12-month period over which the government budgets, plans, and reports on its financial performance. Also known as a financial year and runs from July 1... Read More
Fixed Deposit
A fixed deposit, also time or term deposit, is a bank account that earns interest and has a pre-set date of maturity. Time deposits generally earn a higher rate of interest than regular savings accounts, and the longer the time to maturity, the higher the interest payment will be.A fixed deposit, also time or term deposit, is a bank account that earns interest and has a pre-set date of maturity. Time deposits generally ... Read More
Fixed Interest Rate
A fixed interest rate is an unchanging rate charged on a liability, such as a loan or a mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.A fixed interest rate is an unchanging rate charged on a liability, such as a loan or a mortgage. It might apply during the entire ... Read More
Forecloure
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by selling or taking ownership of the asset used as collateral for the loan.Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments ... Read More
General Insurance
General insurance, also known as non-life insurance, is a type of insurance that provides financial protection for a range of risks other than human life, typically related to physical property such as cars, houses, pets, etc.General insurance, also known as non-life insurance, is a type of insurance that provides financial protection for a range of risks other than human life, ... Read More
Government Securities
Government securities are instruments issued by a national government to raise funds for various purposes, such as financing government operations, funding infrastructure projects or managing debt. These securities are essentially loans that individuals, institutions, and even foreign governments provide to the issuing government.Government securities are instruments issued by a national government to raise funds for various purposes, such as financing government operations, funding infrastructure projects or managing ... Read More
Grace Period
A grace period is a period granted by a lender to a borrower beyond a due date during which loan repayment may be delayed without penalty or cancellation.A grace period is a period granted by a lender to a borrower beyond a due date during which loan repayment may be delayed without ... Read More
Gross Domestic Product
Gross domestic product, often used as a measure of a country’s economic health, is the value of all the final goods and services produced by a country in a specific time period.Gross domestic product, often used as a measure of a country’s economic health, is the value of all the final goods and services produced ... Read More
Gross Income
For individuals, gross income is all the money earned before any deductions such as domestic expenses and taxes are made. For a company, gross income is the earnings made from the sale of goods or services before deducting any business expenses.For individuals, gross income is all the money earned before any deductions such as domestic expenses and taxes are made. For a company, gross income ... Read More
Health Insurance
Health insurance is an agreement in which an insurance company agrees to pay for some or all of the insurance policy holder’s medical expenses when they fall due in exchange for a payment of a specified premium.Health insurance is an agreement in which an insurance company agrees to pay for some or all of the insurance policy holder’s medical expenses ... Read More
High Yield Investment Program
A HYIP is a type of Ponzi scheme that claims to deliver a high return on investment with little to no risk to the investor.A HYIP is a type of Ponzi scheme that claims to deliver a high return on investment with little to no risk to the investor. Read More
Income Tax
An income tax is a tax imposed on individuals or entities in respect of the income or profits they earn. Taxation rates may vary by taxpayer or income type.An income tax is a tax imposed on individuals or entities in respect of the income or profits they earn. Taxation rates may vary by ... Read More
Inflation
Inflation is the rate at which prices of goods and services increase over a given period of time.
Initial Public Offering
An Initial public offering the process by which a public company offers its shares of ownership to the public for the first time, allowing it to become a publicly traded company.An Initial public offering the process by which a public company offers its shares of ownership to the public for the first time, allowing it ... Read More
Insurance
Insurance is a legal arrangement, also called an insurance policy, by which an insurer, usually a company, provides an individual or entity with compensation for financial loss due to unexpected adverse events such as physical property damage, illness, or death in return for payment of a specified premium.Insurance is a legal arrangement, also called an insurance policy, by which an insurer, usually a company, provides an individual or entity with compensation for ... Read More
Insurance Broker
An insurance broker is a professional, often regulated intermediary, who assists individuals and companies with identifying suitable insurance products and negotiates insurance contracts on their behalf with insurers in return for a fee or commission.An insurance broker is a professional, often regulated intermediary, who assists individuals and companies with identifying suitable insurance products and negotiates insurance contracts on their ... Read More
Insurance Claim
An insurance claim is a formal request by a policyholder to their insurer for a payment to meet the expenses arising from the occurrence of an incident covered by the insurance policy.An insurance claim is a formal request by a policyholder to their insurer for a payment to meet the expenses arising from the occurrence of ... Read More
Interest Rate
The interest rate is the amount charged by a lender on a loan to a borrower or the amount paid by a bank on a deposit to a depositor.The interest rate is the amount charged by a lender on a loan to a borrower or the amount paid by a bank on a ... Read More
Internet Banking
Internet banking, also known as online banking, is a mode of electronic banking whereby clients can access their bank account and carry out transactions, no matter where they are located, through their bank’s website or mobile application. A customer of the bank can access internet banking by registering with their concerned bank for the facility, where they will be required to create an online profile, set a password and other credentials for account holder’s verification.Internet banking, also known as online banking, is a mode of electronic banking whereby clients can access their bank account and carry out transactions, no ... Read More
Key Facts Document
A Key Facts Document (KFD) is a brief summary of a financial product's key features, costs, risks, and terms, designed to help consumers make informed decisions and compare options easily.A Key Facts Document (KFD) is a brief summary of a financial product's key features, costs, risks, and terms, designed to help consumers make informed ... Read More
Land Title
A land title is a legal document that shows and grants legal ownership of a real estate property to a person or company for possession and exclusive use.A land title is a legal document that shows and grants legal ownership of a real estate property to a person or company for possession ... Read More
Lease
A lease is a contractual arrangement outlining the terms under which one party, the lessee, agrees to rent an asset owned by another party, the lessor. Assets that are commonly leased include real estate properties, vehicles, industrial or business equipment, and home appliances.A lease is a contractual arrangement outlining the terms under which one party, the lessee, agrees to rent an asset owned by another party, the ... Read More
Ledger/Transaction Fee
Ledger/transaction fees are what banks charge for each transaction carried out by an account holder on their account. The ledger serves as a record of all account activity, including deposits, withdrawals, and other transactions. This means that the total cost of such an account will vary based on the number of transactions processed throughout the billing period.Ledger/transaction fees are what banks charge for each transaction carried out by an account holder on their account. The ledger serves as a record ... Read More
Liability
A liability refers to money or anything else that is owed by a company or individual to another entity.
Lien
A lien is the legal right of a lender or creditor to keep possession of the property of a borrower until the borrower’s debt with the lender is cleared. A lien gives the lender/creditor legal right to sell the property if the borrower defaults on their debt obligation.A lien is the legal right of a lender or creditor to keep possession of the property of a borrower until the borrower’s debt ... Read More
Life Insurance
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay the insurer or their designated beneficiary a sum of money upon the death of the policy holder or after a set period of time, in exchange for premiums paid by the policyholder during their lifetime.Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay the insurer or their ... Read More
Line Of Credit
A line of credit is a loan that can be accessed by a borrower when they need it, up to a certain limit and over a given time period. Unlike a standard loan, the interest on a line of credit is only charged only when the money is used.A line of credit is a loan that can be accessed by a borrower when they need it, up to a certain limit and over ... Read More
Loan
A loan is when a lender such as a bank or credit institution gives money to a borrower so that the borrower agrees to pay back the lender over specified time, typically in a series of regular payments that are divided into principal and interest.A loan is when a lender such as a bank or credit institution gives money to a borrower so that the borrower agrees to pay ... Read More
Loan Commitment Fee
A commitment fee charged by a lender to a borrower that guarantees the borrower future access to an unused loan amount or line of credit at the agreed terms and conditions.A commitment fee charged by a lender to a borrower that guarantees the borrower future access to an unused loan amount or line of credit ... Read More
Maturity Date
Maturity date refers to the date on which the final payment is due on a loan or other financial instrument, such as a bond or term deposit, at which point the principal and remaining interest is due to be paid.Maturity date refers to the date on which the final payment is due on a loan or other financial instrument, such as a bond or ... Read More
Microfinance Institution
A microfinance institution is a financial service provider targeting individuals and small businesses who are typically low-income earners and lack or have limited access to financial services.A microfinance institution is a financial service provider targeting individuals and small businesses who are typically low-income earners and lack or have limited access to ... Read More
Minimum Opening Balance
Also a minimum deposit, is the least amount of money required to open a bank account.
Mobile Banking
Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile electronic device such as a mobile phone or tablet.Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile ... Read More
Money Laundering
Money laundering is a process by which individuals or organizations hide money made from illegal activities by making it appear as though the funds come from legal sources.Money laundering is a process by which individuals or organizations hide money made from illegal activities by making it appear as though the funds come ... Read More
Monthly Maintenance Fee
A monthly maintenance fee is a charge that may be imposed by banks or credit unions on account holders for maintaining certain types of accounts or providing specific services. This fee is typically assessed on a regular basis, usually monthly, and is intended to cover the costs connected with account management, customer service, and other services provided by the bank to the account holder.A monthly maintenance fee is a charge that may be imposed by banks or credit unions on account holders for maintaining certain types of accounts ... Read More
Mortgage
A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The property then serves as collateral to secure the loan. Typically, a bank requires that the value of the collateral is greater than the loan so that a bank is able to recover its money in case of default.A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The property then serves ... Read More
Mortgage Insurance
Mortgage insurance is an insurance policy that protects a mortgage lender if the borrower fails to make repayments, passes away, or is otherwise unable to meet the contractual obligations of the mortgage.Mortgage insurance is an insurance policy that protects a mortgage lender if the borrower fails to make repayments, passes away, or is otherwise unable to ... Read More
Multi-Level Marketing
Also known as direct marketing or network marketing, a business model in which individuals, known as distributors or participants, earn money by selling products or services directly to consumers and by recruiting others to join the business as distributors.Also known as direct marketing or network marketing, a business model in which individuals, known as distributors or participants, earn money by selling products or ... Read More
Mutual Fund
A mutual fund, also known as a unit trust fund, is a company that pools together money from several investors to invest in stocks, bonds, and other securities.A mutual fund, also known as a unit trust fund, is a company that pools together money from several investors to invest in stocks, bonds, ... Read More
National Debt
The total amount of money borrowed by a country’s government. The government may borrow from the public, domestic financial companies, foreign governments, or international organisations.The total amount of money borrowed by a country’s government. The government may borrow from the public, domestic financial companies, foreign governments, or international ... Read More
Net Worth
Net worth is an indicator of financial wealth which refers to the value of all the non-financial and financial assets owned by an individual or institution after deducting the value of all its outstanding liabilities.Net worth is an indicator of financial wealth which refers to the value of all the non-financial and financial assets owned by an individual or ... Read More
Overdraft
An overdraft is a loan facility whereby you agree with your bank to spend more money than you have on your account, such that your account balance goes into negative values. The overdraft amount is capped at a limit by the issuing bank, and you will be charged an interest rate on it just like any other loan. An overdraft can be obtained by applying for it at your bank.An overdraft is a loan facility whereby you agree with your bank to spend more money than you have on your account, such that your ... Read More
Pension
A pension is a long-term saving scheme that involves regular payments being made into a pool of funds by individuals or their employers, which funds are to be accessed by the individuals after they retire.A pension is a long-term saving scheme that involves regular payments being made into a pool of funds by individuals or their employers, which funds ... Read More
Personal Loan
A personal loan is money borrowed by an individual or family for purposes of personal consumption such as buying a car, buying home appliances, shopping, or going on holiday. A personal loan may be secured or unsecured.A personal loan is money borrowed by an individual or family for purposes of personal consumption such as buying a car, buying home appliances, shopping, ... Read More
PIN
In financial transactions, a personal identification number (PIN) is a numeric code used to verify a customer's identity when using electronic payment channels in order to complete any transaction.In financial transactions, a personal identification number (PIN) is a numeric code used to verify a customer's identity when using electronic payment channels in order ... Read More
Ponzi Scheme
A Ponzi scheme is a type of investment fraud that pays profits to earlier investors with funds collected from new investors.
Prime Interest Rate
A prime interest rate serves as a benchmark for banks to set interest rates on various types of loans and credit products. The prime rate is usually offered to customers with a good credit history.A prime interest rate serves as a benchmark for banks to set interest rates on various types of loans and credit products. The prime rate ... Read More
Principal Payment
In the context of loans, a principal payment is a regular payment made toward the original amount of a loan that is owed. The principal is the total amount borrowed and therefore must be repaid. When a borrower makes monthly payments on a loan, the payment covers accrued interest charges first, and the remainder is applied to the principal. Therefore, a principal payment reduces the outstanding loan amount due as well as the amount of interest that accrues each month.In the context of loans, a principal payment is a regular payment made toward the original amount of a loan that is owed. The principal ... Read More
Private Sector
The part of a country's economy that is run by individuals and companies and not controlled by the government.
Property Tax
Property tax is a tax paid on property owned by an individual or legal entity such as a corporation.
Purchase Agreement
A purchase agreement is a legal document that transfers the ownership of a property from the seller to the buyer.
Recession
A recession is a prolonged, significant decline in activity across an economy that is usually marked by job scarcity and losses and reductions in consumer spending, business investment, and industrial production.A recession is a prolonged, significant decline in activity across an economy that is usually marked by job scarcity and losses and reductions in consumer ... Read More
Repossession
Repossession is the process whereby a lender takes ownership of a security put forward by a borrower to obtain a loan when the borrower fails to repay their debt to a lender.Repossession is the process whereby a lender takes ownership of a security put forward by a borrower to obtain a loan when the borrower fails ... Read More
Repurchase Agreement
A repurchase agreement, also known as a repo, is a short-term contractual agreement where one party agrees to temporarily sell a security they own to another party for cash in return, and to buy the security back at a later date at a specified higher price.A repurchase agreement, also known as a repo, is a short-term contractual agreement where one party agrees to temporarily sell a security they own to ... Read More
Savings Account
A saving account is a type of bank account that allows you to deposit money safely with a bank while earning interest. Unlike a fixed deposit account, the account holder may withdraw their funds at any time, although penalty fees may apply.A saving account is a type of bank account that allows you to deposit money safely with a bank while earning interest. Unlike a fixed ... Read More
Share Certificate
A share certificate, also referred to as a stock certificate, is a legal document that serves as proof of ownership by an investor of a company’s shares.A share certificate, also referred to as a stock certificate, is a legal document that serves as proof of ownership by an investor of a ... Read More
Simple Interest
Simple interest is interest calculated only on the principal, or original, amount of a deposit or loan, so that the interest amount remains the same each period.Simple interest is interest calculated only on the principal, or original, amount of a deposit or loan, so that the interest amount remains the same ... Read More
Standing Order
A standing order is an instruction given by a bank account holder to their bank to pay a set amount at regular intervals to another account which may belong to an individual or an organisation. The frequency of the standing order may be weekly, monthly, quarterly, or yearly, and it can usually be cancelled at any time.A standing order is an instruction given by a bank account holder to their bank to pay a set amount at regular intervals to another ... Read More
Stockbroker
Stockbroker is a financial professional or firm that facilitates the buying and selling of securities such as stocks, bonds, and other investments products, on behalf of individual investors and institutions. Stockbrokers play a crucial role in the financial markets by executing trades and providing valuable financial advice and services to their clients.Stockbroker is a financial professional or firm that facilitates the buying and selling of securities such as stocks, bonds, and other investments products, on behalf ... Read More
Stocks
A stock is an investment that gives you an ownership share in the company that issued the stock and entitles you to a proportion of its assets and profits equal to how much of its stock you own. For companies that issue stocks, stocks are a way to raise money to fund business expansion.A stock is an investment that gives you an ownership share in the company that issued the stock and entitles you to a proportion of ... Read More
Tax Evasion
Tax evasion is an illegal act of deliberately and wilfully avoiding the payment of taxes that are legally owed. It involves intentionally misreporting information on tax returns, financial documents, or other records to entirely avoid paying taxes that should be paid according to the law.Tax evasion is an illegal act of deliberately and wilfully avoiding the payment of taxes that are legally owed. It involves intentionally misreporting information on ... Read More
Tax Refund
A tax refund is a reimbursement made to a taxpayer for any excess amount they paid in taxes to the state government.
Taxpayer Identification Number
A taxpayer identification number (TIN) is a unique identification number assigned to individuals, businesses, and other entities by the domestic revenue authority for the purpose of tracking their tax obligations. TINs are used by tax collecting agencies to identify taxpayers, process tax returns, collect taxes, and maintain accurate records.A taxpayer identification number (TIN) is a unique identification number assigned to individuals, businesses, and other entities by the domestic revenue authority for the purpose ... Read More
Transaction
In business or finance, a transaction refers to an action or an agreement where a buyer gives a seller money in exchange for goods or services.In business or finance, a transaction refers to an action or an agreement where a buyer gives a seller money in exchange for goods or ... Read More
Transfer Fees
Transfer fees are charges or costs associated with changing the ownership of an asset such as a house or car from one party to another, and the amounts can vary widely by the type of transfer and the parties involved.Transfer fees are charges or costs associated with changing the ownership of an asset such as a house or car from one party to another, ... Read More
Trust Account
A trust account, or a trust fund, is a legal arrangement through which funds or assets are held by a third party (the trustee) for the benefit of another party (the beneficiary). The beneficiary may be an individual or a group. The creator of the trust is known as a grantor or settlor.A trust account, or a trust fund, is a legal arrangement through which funds or assets are held by a third party (the trustee) for ... Read More
Underwriting
Underwriting in insurance is the process by which insurers assess the range of potential uncertainties associated with providing insurance coverage for an individual or entity to determine the appropriate price of the policy to be paid by the insured party in exchange for that coverage.Underwriting in insurance is the process by which insurers assess the range of potential uncertainties associated with providing insurance coverage for an individual or entity ... Read More
Unsecured Loan
Unsecured loans don’t require any collateral. Common examples include credit cards, some types of personal loans, and student loans.
Value-Added Tax
Value-added tax (VAT) is a form of indirect taxation in which the tax is imposed on the difference between a business’s sales and its purchases. Value-added tax is collected from end-customers by businesses and transferred to the government.Value-added tax (VAT) is a form of indirect taxation in which the tax is imposed on the difference between a business’s sales and its ... Read More
Variable Interest Rate
A variable interest rate is an interest rate on a loan that can be changed by the lender depending on economic and business conditions. The frequency and magnitude of the interest changes depends on the terms and conditions of the loan.A variable interest rate is an interest rate on a loan that can be changed by the lender depending on economic and business conditions. The ... Read More
Working Capital
Working capital is the amount of money a company has available to cover its day-to-day operational expenses and short-term debts, indicating the company’s ability to meet its short-term financial obligations and continue its regular business operations. It is measured as the difference between a company’s current assets and its current liabilities.Working capital is the amount of money a company has available to cover its day-to-day operational expenses and short-term debts, indicating the company’s ability ... Read More