Terms used in banking business such Tax-Free Savings Account,Tax Avoidance, Tariff etc

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The terms used in banking business such Tax-Free Savings Account,Tax Avoidance, Tariff etc.


Terms used in banking business such Tax-Free Savings Account,Tax Avoidance, Tariff etcThis post explains about terms used in banking such as Trading Book,Trade Union,Trade Creditors,Time deposit or CD,Telephone Banking,Technical Analysis,Tax-Free Savings Account,Tax Avoidance,Tariff 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

Tangible Assets: Physical assets such as plant, machinery, factories, and offices.

Tariff: It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Tax and Revenue Anticipation Notes (TRANs): Short-term notes issued by states or municipalities to finance current operations in anticipation of future tax receipts and revenue that will be used to repay the debt.

Tax Anticipation Notes (TANS): Short-term notes issued by states or municipalities to finance current operations in anticipation of future tax collections that will be used to repay the debt.

Tax Avoidance: Lawful agreement or re-arrangement of the affairs of an individual or company intended to avoid liability to tax.

Tax Deferred: Earnings on investments in registered accounts (such as your RRSP or RESP) in the form of interest, dividends or capital gains are not taxable until the funds are withdrawn.

Tax Evasion: Fraudulent or illegal arrangements made with the intention of evading tax, e.g. by failure to make full disclosure to the revenue authorities.

Tax Haven: An international banking and financial centre providing privacy and tax benefits.

Tax Incentives:Tax benefits. Most tax incentive measures fall into one or more of the following categories: tax exemption (tax holiday); deduction from the taxable base; reduction in the rate of tax; tax deferment, etc.

Tax-Exempt Bonds: Bonds for which the interest paid is usually exempt from federal taxes and, in some cases, from state and local taxes in state of issuance. The interest rate paid on these bonds is generally lower than rates on securities that are not tax-exempt.

Tax-Free Savings Account (TFSA): A type of savings account that grows tax-free. You can save or invest up to a maximum of $5,000 per person, per year in TFSA without paying tax on the interest the money earns in the account. Withdrawals from this type of account are also tax-free.

TCP/IP - Transmission Control Protocol/Internet Protocol refers to the suite of communications protocols used to connect computer systems on the Internet.

Technical Analysis: A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Contrasted with fundamental analysis which involves the study of financial accounts and other information about the company. (It is an attempt to predict movements in security prices from their trading volume history.)

Telegraphic Wire Transfer: An electronic method of transferring money to another financial institution electronically.

Telephone Banking: Service provided by your financial institution allowing you to perform transactions over the telephone. Most telephone banking requires authentication (you have to prove who you are) and instructions are provided by a customer service representative or via an interactive voice response (IVR) system.

Teller : Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other banking services for the public.

Teller: He/she is a staff member of the bank who cashes cheques, accepts deposits and perform different banking services for the general mass.

Term Deposits: Secure investments that you purchase for a fixed period of time. Term deposits generally offer a higher rate of interest than a simple savings account and are available in a variety of term lengths, currencies, and several redemption options.

Term Issue: A bond issue that matures all at once on a specific date.

Term Loan:A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.

Term: A fixed period of time. When borrowing money, it is the period of time over which you agree to pay back a loan or mortgage. When depositing money, it is the length of time over which a financial institution keeps your money.

Thin Market: A market in which trading volume is low, with very few bids to buy or offers to sell.

Tier 1 Capital: Refers to core capital consisting of Capital, Statutory Reserves, Revenue and other reserves, Capital Reserves (excluding Revaluation Reserves) and unallocated surplus/ profit but excluding accumulated losses, investments in subsidiaries and other intangible assets.

Tier 2 Capital:Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid Capital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.

tiered -- A term that applies to interest rates, where the actual rate applied depends on the balance on the account.

Time Deposit : Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term.

Time deposit or CD: An agreement to deposit a stated amount in the bank for a fixed length of time during which a fixed rate of interest will be paid (unless disclosed as a variable rate). Penalties are typically assessed if the funds are withdrawn before the end of the agreed-upon period.

Time Horizon: The duration of time an investment is intended for.

Title Deeds: Documents which prove who owns a property and under what terms.

Token - is a hardware device that generates a random number as a secondary form of authentication for some Value Transactions carried out through Internet Banking. Also known as a BOQ Security Token.

Total operating expenses: Sum of interest expended, staff expenses and other overheads.

Toxic debt: shorthand for types of assets that have caused severe problems for the financial institutions that held them since the onset of the credit crunch. US sub-prime mortgage debt was the original toxic debt.

Trade Creditors: Organisations, which are owed money for goods and services supplied.

Trade Date: The date when a security transaction is executed.

Trade Debtors: Organisations, which owe money for goods and services supplied.

Trade Deficit: The amount by which merchandise imports exceed merchandise exports.

Trade Gap: It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union: It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Trader: Someone who buys and sells securities for a personal account or a firm's account for the purpose of short-term profit.

Trading Book: Investments in trading book are held for generating profits on the short term differences in prices/yields. Held for trading (HFT) and Available for sale (AFS) category constitute trading book.

The above details describes about terms called in banking such as Trading Book,Trade Union,Trade Creditors,Time deposit or CD,Telephone Banking,Technical Analysis.Tax-Free Savings Account,Tax Avoidance,Tariff 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.

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