Terms used in banking business such as Federal Reserve System,Fertility Rate, FFELP,Fill or Kill,Firewall etc

 

The terms used in banking business such as Federal Reserve System,Fertility Rate, FFELP,Fill or Kill,Firewall etc.

 

 

This post explains about terms used in banking such as Ex-dividend,Exempt Securities,External Processing Code,Face Amoun,Face Value,Factoring,FCNR Accounts,Fed Reference Number,federal reserve system,Federal Reserve System,Fertility Rate,FFELP,Fill or Kill,Firewall etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

 

The terms used in banking business

 

 

Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.

 

Execution of Documents: Execution of documents is done by putting signature of the person, or affixing his thumb impression or putting signature with stamp or affixing common seal of the company on the documents with or without signatures of directors as per articles of association of the company.

 

The terms used in banking  business such as Federal Reserve System,Fertility Rate, FFELP,Fill or Kill,Firewall etcExempt Securities: Securities that are exempt from the registration requirements of the Securities and Exchange Commission.

 

Exports:Products and services sold to other countries.

 

Ex-Rights: Without rights. When a security is sold ex-rights, the buyer of that security is not entitled to the rights to purchase a new issue of the security at a discount..

 

Extended Overdrawn Balance Charge (EOBC):If your account has a negative balance for 5 or more consecutive business days, you will receive an additional Extended Overdrawn Balance Charge of $35 on the sixth day. This fee is in addition to any applicable fees for overdraft items, insufficient funds and returned items. See Personal Schedule of Fees for details.

 

External Processing Code (EPC): A number placed in Position 44, just before the ABA routing number, of the MICR line. Check 21 and the proposed Federal Reserve regulations require changes to the EPC field for processing substitute checks. Whenever a substitute check is created, a “4” is always printed in the EPC field. ANS X9.90 requires that a “4” be placed in the EPC position identifying a substitute check. On an original check, Position 44 generally is left blank for forward collection. When a substitute check is created to return the check to a depositor, the substitute check will have a “4” in the EPC field. This holds true when an image of an unpaid check is returned to the bank of first deposit or a substitute check is created and sent back to the depositor of the original item. A “2” is placed on a qualified return strip or carrier document if the item is an original check being sent as a qualified return. ANS X9.90 requires that a “5” be placed in the EPC position for qualified returns of a substitute check. In the return process, a “5” is placed on the qualified return strip, carrier document or perforated strip attached to a substitute check.

 

Extraordinary Redemption: Redemption occurring under an unusual circumstance such as destruction of the facility financed.Different from optional redemption or mandatory redemption on municipal issues. Compare Optional Redemption.

 

Face Amount: The par value (i.e., principal or maturity value) of a security appearing on the face of the instrument.

 

Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.

 

Face Value: It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

 

Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.

 

Factoring:Sale of receivables to a financial institution usually on a ‘non-recourse’ basis.

 

Fail: The failure of a seller to deliver securities to the purchaser or of the buyer to deliver the proper funds as contracted.

 

Fannie Mae: Trade name for the Federal National Mortgage Association (FNMA).

 

Fascism: It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

 

FBO: For Benefit Of is used in electronic funds transfers to notate a second beneficiary or to designate a contact person or organization.

 

FCNR Accounts – Foreign Currency Non-Resident accounts are the ones that are maintained by the NRIs in foreign currencies like USD, DM, and GBP etc. The account is a term deposit with interest rates linked to the international rates of interest of the respective currencies.

 

FDRS: The Financial Data Retrieval System is an Indiana University database and report generating system, containing information from the KFS.

 

Fed Reference Number: A tracking number given to a wire transfer, to identify it and to assist in research.

 

Federal Deposit Insurance Corporation (FDIC):The FDIC is an independent agency of the United States government that protects people who have funds on deposit with FDIC-insured banks and savings associations against the loss of their insured deposits if their bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.The FDIC guarantees deposit accounts (checking, savings, money market savings and CDs) up to applicable limits, which is $250,000 per depositor, per insured bank, for each account ownership category.

 

Federal Economy: It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.

 

federal reserve system -- A governmental agency established by Congress to organize and regulate banking throughout the United States. The twelve reserve banks keep paper and currency reserves for affiliated banks.

 

Federal Reserve System (Fed): An independent agency of the U.S. government that plays a central role in monetary policy, domestic payments systems, and the regulation of financial institutions.

 

Fedline: The same-day value electronic funds transfer system operated in the U.S. by the Fed.

 

Fertility Rate: The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

 

FFC: For Further Credit is used in electronic funds transfers to notate a second beneficiary.

 

FFELP: The Federal Family Educational Loan Program is a government program that provides loans for higher education expenses.

 

Fiduciary Issue: Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

 

Fiduciary: An individual or group, such as a bank or trust company, that acts for the benefit of another party or to which property is given to hold in trust.

 

Fill or Kill : The instructions to fill an entire order immediately or kill (cancel) the entire order.

 

Financial Plan: A written report of your financial goals, resources, assets and debts, and the investments.

 

Firewall - a piece of software or hardware which provides a barrier between your computer and the Internet. A firewall will prevent intruders or hackers from gaining access to your computer. and should be updated regularly. Firewall software is only as effective as the last update. You should download the latest firewall signatures regularly from your preferred supplier.

 

The above details describes about terms called in banking such as Ex-dividend,Exempt Securities,External Processing Code,Face Amoun,Face Value,Factoring,FCNR Accounts,Fed Reference Number,federal reserve system,Federal Reserve System,Fertility Rate,FFELP,Fill or Kill,Firewall etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.Terms used in banking business such as Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate etc

 

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