Terms with Category Financial Banking

  • Credit Union (CU) Acronym,
    • A non-profit, cooperative financial institution owned and controlled by the people who use its services, usually a group such as employees in the same company or industry. Credit unions historically have been able to offer lower rates and fees and still operate in the black. Credit unions rely on a financial reserve to absorb unexpected losses from loan defaults or other financial setbacks, and the majority of credit unions carry federal deposit insurance that protects individual accounts up to a specified amount in the event the credit union fails.
    Credit unions are member-owned, full service co-operative financial institutions.
  • Credit Worthiness Definition,
    • How likely an individual or entity is to default on their debt.
  • Creditor Definition,
    • One who is owed money.
  • Creditor Insurance Definition,
    • Insurance that repays debt if the borrower cannot.
  • Current Market Value (CMV) Acronym,
    • The estimated price determined by the recent sale of similar properties.
  • Current Ratio Definition,
    • A method of determining an entity's liquidity and its ability to cover its current liabilities.
  • Current Yield Definition,
    • The annual increase in the value of an investment, usually expressed as a percentage.
  • Death Benefit (DB) Acronym, Very Important,
    • A payment or series of payments made to the beneficiaries of a life insurance policy.
    An amount paid to a beneficiary in a life linsurance policy.
  • Debit Definition,
    • Another name for withdrawal of funds from your account.
  • Debit Bureau Definition,
    • A service used by banks that eventually tracks account opening and closing information, cheque order history, cheque writing history, any history of collection activity on unpaid accounts, frequency of debit and ATM card use and household demographics. Under the system, when a consumer gives a cheque to a participating retailer, the individual's account is identified by punching a code into a computer or swiping a card containing a magnetic strip or microchip through an electronic reader, which tells the retailer whether to accept or reject the transaction.
  • Debit Card (DC) Acronym, Important,
    • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
  • Debt Definition,
    • Money one person or firm owes to another person or firm.
  • Debt Consolidation Definition,
    • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • Debt Issues Definition,
    • The issuance of bonds or other forms of debt on the public markets.
  • Debt-to-Income Ratio Definition,
    • The percentage of an individual's income that is used to repay debt.
  • Debt/Equity Ratio Definition,
    • A comparison of debt and equity used to measure the health of a business.
  • Debtor Definition,
    • Anyone who owes money to a creditor.
    • A person who has filed a petition for relief under the bankruptcy laws.
  • Declining Life Insurance Definition,
    • Life insurance with a decreasing death benefit, often used to insure mortgage debt.
  • Deductions Definition,
    • Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.
  • Default Definition,
    • When a borrower fails to fulfill the obligations of a loan or lease.
  • Deferred Annuity Definition,
    • An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • Deficit Definition,
    • When expenses surpass income or liabilities surpass assets.
  • Deflation Definition,
    • An actual decline in the general level of prices in the economy.
  • Delinquency Definition,
    • Failure to make mortgage payments when mortgage payments are due.
  • Demand Loan Definition,
    • A loan that must be repaid in full, on demand.
  • Deposit Definition,
    • A sum of money put towards a given transaction. In a property purchase, a deposit signifies the intent to buy, which is paid to the vendor and applied to the principal cost.
    • An act of putting a sum of money in to a bank account.
  • Deposit Insurance Definition,
    • The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered.
  • Depreciation Definition,
    • The gradual loss of value of a building or other property because of age or natural wear.
  • Depression Definition,
    • A prolonged downturn in the economy and level of business activity.
  • Derivatives Definition,
    • Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management.
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