Terms used in banking such as Arbitrage, Arbitration, Assessed Valuation, Assessment Ratio etc


The terms used in banking such as Arbitrage, Arbitration, Assessed Valuation, Assessment Ratio etc.


This post explains about terms used in banking such as Arbitrage, Arbitration, Assessed Valuation,Assessment Ratio,Asset-Backed Securities,An automated teller machine,Auction,Authorized Users of Gilt Account Holder,Automatic Bill Payment,Automatic payment 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


APR: The annual percentage rate of interest, usually on a loan or mortgage, usually displayed in brackets and representing the true cost of the loan or mortgage as it shows any additional payments beyond the interest rate.


Arbitrage: Simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures so as to benefit from difference in their price relationship.


Arbitrage: Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.

The terms used in banking such as Arbitrage, Arbitration, Assessed Valuation, Assessment Ratio etc

Arbitrage: Effecting sales and purchases simultaneously in the same or related securities to take advantage of a market inefficiency.


Arbitrage:When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.


Arbitration:Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.


ARF: Automatic Refinance Facility


Arrears: Amounts, such as interest or preferred stock dividends, that are overdue.


ASB:Accounting Standards Board


Ask Price: The lowest price at which a dealer is willing to sell a given security.


Asked Price: See Bid and Asked.


Assessed Valuation: The valuation placed on property for the purpose of taxation. In some areas, the property is assessed below 100 percent of the market value. See Assessment Ratio.


Assessment Ratio: The ratio of the assessed value of property to the full or actual property value. Full value is the fair market value at the bid side of the market, less an allowance for sales and other expenses. The normal standard in California is of full value.


Asset/Liability Risk: A risk that current obligations/ liabilities cannot be met with current assets. A fundamental risk in all organizations, which should manage the risk and maintain liquidity or become insolvent.


Asset: an item with economic value that is owned or controlled by an individual, business or government.


Asset-Backed Securities (ABS): A type of security that is backed by a pool of bank loans, leases, and other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to mortgage-backed securities.


assets -- Items of monetary value (e.g., house, land, car), owned by an individual or a company.


Assets: Things that one owns which have value in financial terms.


Assignment: Receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.


At the Market: A trading term for the buying or selling of securities at the current market price rather than at a predetermined price.


ATM - An automated teller machine (ATM) is a computerised telecommunications device that provides the clients with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVV. Authentication is provided by the customer entering a personal identification number (PIN)


At-the-money: The exercise price of a derivative that is closest to the market price of the underlying instrument.


At-the-Opening Order: A trading term for an order that is to be executed at the opening of the market or not at all.


Auction Coverage: The ratio of the total bids offered in an auction to the number of accepted bids. This ratio is used to evaluate general interest in any given auction.


Auction:When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid taking into consideration the quality and quantity of the commodity.


Audit Risk: The risk of giving an incorrect audit opinion.


Autarchy:If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.


Authorization: The issuance of approval, by a credit card issuer, merchant, or other affiliate, to complete a credit card transaction.


Authorized Capital Stock: The total amount of stock that a company is permitted to issue under its charter.


authorized user -- A person who has been given permission to make changes to a credit account. This status must be given by the primary account user. An authorized user is not legally responsible for repaying the account.


Authorized Users of Gilt Account Holder (GAH User): Once GAH is created as a client of PM in the web-based system by CCIL (the NDS OM Admin), Users of GAH are created by PM and later authorized by CCIL to access and operate the system. While authorizing, CCIL generates the login ID and password for the GAH Users and forwards the same to PM. PM in turn forwards the same to GAH to enable its employees (GAH Users) to log-in to the Web Based Application (https://www.ndsind.com).


Automated Banking Machines (ABMs): Terminals that allow bank customers to perform many everyday banking tasks, e.g., deposits, withdrawals, bill payments and transfers between accounts.


Automated Clearing House (ACH): A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers' salaries and government benefit payments (i.e., social security, welfare, and veterans' entitlements), and preauthorized transfers..


Automated Teller Machine (ATM): A self-service machine that allows you to perform basic banking activities. To use an ATM, you need an ATM card or debit card and a PIN (Personal Identification Number). ATMs are also known as an Automated Banking Machines (ABM).


Automated Teller Machine (ATM): A machine, activated by a magnetically encoded card or other medium that can process a variety of banking transactions. These include accepting deposits and loan payments, providing withdrawals, and transferring funds between accounts.


Automatic Bill Payment: A checkless system for paying recurring bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH).


Automatic funds transfer:An arrangement that automatically moves funds from your account to another internal or external account on a date you choose; for example, every payday.


Automatic payment:An arrangement that automatically deducts funds from your account (usually a checking account) on the day you choose in order to pay a recurring bill (such as car, insurance, mortgage payments, etc.).


The above details describes about terms called in banking such as Arbitrage, Arbitration, Assessed Valuation,Assessment Ratio,Asset-Backed Securities,An automated teller machine,Auction,Authorized Users of Gilt Account Holder,Automatic Bill Payment,Automatic payment 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 such as Annual Percentage Rate, Annuity, Appraisal, APEDA etc



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