banking

Question 1

to put money into someone’s account

Answer 1

CREDIT

Question 2

to take out money from an account

Answer 2

DEBIT

Question 3

a computerized machine outside a bank that allows bank customers to withdraw money, check their balance, and so on

Answer 3

ATM(AUTOMATIC TELLER MACHINE)

Question 4

a customer’s instruction to a bank to pay fixed sums of money to certain people or organizations at stated times

Answer 4

STANDING ORDER

Question 5

an arrangement by which a customer can withdraw more from a bank account than has been deposited in it, up to an agreed limit; interest on the debt is calculated daily

Answer 5

OVERDRAFT

Question 6

a card which guarantees payment for goods and services purchased by the cardholder, who pays back the bank or finance company at a later date

Answer 6

CREDIT CARD

Question 7

a fixed sum of money on which interest is paid, lent for a fixed period, and usually for a specific purpose

Answer 7

LOAN

Question 8

a loan, usually to buy property, which serves as a security for the loan; to take out a loan with a property as security

Answer 8

MORTGAGE

Question 9

a plastic card issued to bank customers for use in cash dispensers

Answer 9

CASH CARD

Question 10

an account that pays little or no interest, but allows the holder to withdraw cash without any restrictions

Answer 10

CURRENT OR CHECKING ACCOUNT

Question 11

an account that pays interest, but usually cannot be used for paying cheques, and on which notice is often required to withdraw money

Answer 11

DEPOSIT OR SAVINGS (GB) OR TIME OR NOTICE ACCOUNT(US)

Question 12

to put money in a bank or account; or money placed in a bank

Answer 12

DEPOSIT

Question 13

the money used in countries other than one’s own

Answer 13

FOREIGN CURRENCIES

Question 14

a record of all transactions (credits and debits) in a bank account during a particular period

Answer 14

BANK STATEMENT

Question 15

to have a deficit in the account

Answer 15

IN THE RED

Question 16

to have a surplus in the account

Answer 16

IN THE BLACK

Question 17

a payment card that deducts money directly from

a consumer’s checking account to pay for a purchase.

Answer 17

DEBIT CARD

Question 18

to take money out of your bank account

Answer 18

WITHDRAW

Question 19

to offer securities for sale to the general public

Answer 19

TO ISSUE

Question 20

to guarantee to buy all the new shares that a company issues, if they cannot be sold to the public

Answer 20

TO UNDERWRITE

Question 21

to cancel a bad debt or a worthless asset from an account

Answer 21

TO WRITE OF

Question 22

person or organization to whom money is owed (for goods or services rendered, or as a repayment of a loan)

Answer 22

CREDITOR

Question 23

person, company or a country that has borrowed money

Answer 23

DEBTOR

Question 24

anything that acts as a security or guarantee for a loan

Answer 24

COLLATERAL

Question 25

failure to repay a loan at the scheduled time

Answer 25

DEFAULT

Question 26

money paid to the lender for the use of borrowed money

Answer 26

INTEREST

Question 27

the amount of a loan, which the borrower has to pay back when the loan matures

Answer 27

PRINCIPAL

Question 28

available cash, or having assets that can easily be turned into cash

Answer 28

LIQUIDITY

Question 29

the date when a loan becomes repayable

Answer 29

MATURITY

Question 30

how much money a loan pays, expressed as a percentage; the rate of income an investor receives from security; money produced as a return on an investment

Answer 30

YIELD

Question 31

the profits made on investments

Answer 31

RETURNS

Question 32

having money to pay your debts at the time they must be paid

Answer 32

SOLVENCY

Question 33

unable to pay debts or continue to do business

Answer 33

BANKRUPT

Question 34

the act of getting control of a company by buying over 50% of its shares

Answer 34

TAKEOVER

Question 35

when a company combines with another one

Answer 35

MERGER

Question 36

buying and selling stocks or shares for clients

Answer 36

STOCKBROKING

Question 37

certificates to show that someone owns stocks, shares or bonds; saleable papers, traded on the stock exchange, that yield an income (dividend, interest, etc.)

Answer 37

SECURITIES

Question 38

the ending or relaxing of legal restrictions

Answer 38

DEREGULATION

Question 39

a group of companies, operating in different fields, which have joined together

Answer 39

CONGLOMERATE

Question 40

a fee charged by a bank for undertaking a transaction

Answer 40

COMMISSION

Question 41

the difference between the interest rates that banks pay to depositors and those they charge for loans to borrowers, from which they make their profits

Answer 41

SPREAD OR MARGIN

Question 42

banking both for individuals and companies

Answer 42

UNIVERSAL BANKING

Question 43

banking for businesses and large organizations

Answer 43

INVESTMENT OR CORPORATE BANKING

Question 44

transactions by non-residents in foreign currencies in tax havens such as Bermuda, the Cayman Islands, Liechtenstein, etc.

Answer 44

OFF-SHORE BANKING

Question 45

banking for the general public

Answer 45

RETAIL BANKING

Question 46

doing banking transactions by telephone (telephone banking) or from one's own personal computer (internet banking)

Answer 46

HOME BANKING

Question 47

the charge which always stays the same

Answer 47

FLAT RATE

Question 48

the rate at which central bank makes secured loans to commercial banks; the interest rate at which central banks discount government and other sure debt instruments from commercial banks

Answer 48

DISCOUNT RATE

Question 49

the lowest lending rate that banks charge blue-chip borrowers

Answer 49

BASE RATE (GB) OR PRIME RATE (US)

Question 50

a company considered to be without risk

Answer 50

BLUE CHIP

Question 51

a lender’s estimation of a company’s present and future solvency

Answer 51

CREDIT STANDING (CREDIT RATING OR CREDITWORTHINESS)

Question 52

a bank that trades in money, receives and holds deposits, pays money according to customers’ instructions and makes loans to individuals and small companies

Answer 52

COMMERCIAL OR RETAIL BANK

Question 53

a bank that arranges finance for industry, international trade, and offers services for rich individual and corporate clients

Answer 53

INVESTMENT BANK OR MERCHANT BANK

Question 54

in Islamic countries and major financial centres, offer interest-free banking; banks which do not pay interest to depositors or charge interest to borrowers, but invest in companies and share profits (or losses) with their depositors

Answer 54

ISLAMIC BANKS

Question 55

some car manufacturers, food retailers and department stores who offer products like personal loans, credit cards and insurance

Answer 55

NON-BANK FINANCIAL INTERMEDIARIES

Question 56

a private investment fund for wealthy investors that trade in securities and derivatives and use a wider variety of (risky) investing strategies than traditional investment funds, in order to achieve higher returns whether markets go up or down

Answer 56

HEDGE FUND

Question 57

pooling (grouping together) financial assets like mortgages, which produce a cash flow, and converting them into securities which are then sold to investors

Answer 57

SECURITIZATION

Question 58

borrowers with poor credit ratings and consequently a high risk of default

Answer 58

SUBPRIME BORROWERS

Question 59

a massive reduction in the amount of credit available for banks to lend to other banks, businesses and households

Answer 59

CREDIT CRISIS or ‘CREDIT CRUNCH’

Question 60

a situation that occurs when a large number of bank or other financial institution's customers withdraw their deposits simultaneously due to concerns about the bank's solvency.

Answer 60

BANK RUN

Question 61

a restraint or limitation of credit; restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth

Answer 61

CREDIT SQUEEZE

Question 62

the price at which one currency can be exchanged for another one

Answer 62

EXCHANGE RATE

Question 63

the cost of borrowing money, expressed as a percentage of the loan per period of time

Answer 63

INTEREST RATE

Question 64

a rise in the general level of prices, and increase in the money supply

Answer 64

INFLATION

Question 65

government or central bank actions concerning the control of the amount of money in circulation, for example by changing interest rates

Answer 65

MONETARY POLICY

Question 66

the amount of money in circulation in an economy at a particular time

Answer 66

MONEY SUPPLY

Question 67

a piece of paper money issued by a (central) bank

Answer 67

BANKNOTE