A Commitment Letter is an official notification from a lender to a borrower indicating that the loan application has been approved and outlining the terms of the prospective loan.
Comprehensive explanation of the Compound Amount of One and how it represents the growth of $1 with compounded interest. Illustrated with a detailed example and formulae.
A comprehensive guide to understanding compound interest, its calculations, frequencies, historical context, and applications.
Comprehensive overview of Concentration Banking, detailing its processes, benefits, historical context, and modern applications.
A consolidation loan combines multiple loans or debts into a single loan, often with the aim of reducing the total monthly payments.
A constant-payment loan is a type of loan where equal payments are made periodically, ensuring the debt is fully paid off by the final payment. Explore its functionality, applications, and comparisons with other loan types.
An in-depth exploration of the contract interest rate, also known as the face interest rate, covering definitions, types, applications, and more.
An in-depth exploration of the contract rate, also known as the face interest rate, defining its relevance in financial agreements.
A comprehensive overview of Contributory Pension Plans, where both employees and employers contribute towards the employee's retirement fund.
A correspondent in the financial context refers to an organization that regularly performs services for another organization within a market that may be inaccessible to the latter. This term is widely used in banking, where a correspondent relationship typically involves a depository component to cover expenses and streamline transactions.
Cosigning involves affixing one's signature alongside the principal signer on a contract, transferring liability and responsibility to both parties.
A comprehensive overview of a Cosigner, detailing their role, responsibilities, implications, and differences from a co-mortgagor.
An in-depth look at the cost of funds, which represents the interest cost a financial institution must pay for the use of money. Analyzing its implications in the banking and savings and loan industries.
Understanding the term 'cover' in the context of finance, including its implications in stock trading, corporate finance, and bond safety ratings.
A Credit Analyst assesses the financial affairs of individuals or corporations to evaluate their creditworthiness. This professional also determines the credit ratings of corporate and municipal bonds by analyzing financial conditions and trends of the issuers.
A comprehensive overview of credit bureaus, which are private organizations that collect and maintain consumer credit data files and provide credit information to authorized users for a fee.
An in-depth exploration of Credit Bureau Scores including their types, significance, calculation methods, historical context, and practical applications.
A comprehensive guide to understanding credit cards, their functionality, types, historical context, and impact on the financial world.
An in-depth exploration of credit history, its importance, components, and impact on financial decision-making.
An in-depth guide to understanding what a credit limit is, how it is determined, its types, its impact on credit scores, and practical considerations for managing it.
A comprehensive explanation of Credit Line, also called Line of Credit, including its types, examples, and special considerations.
An in-depth look at credit orders, transactions made without immediate payment, and billed at a later date.
Credit rating is a formal evaluation of an individual's or a company's credit history and capability of repaying obligations. This assessment is conducted by various firms such as Experian or Dun & Bradstreet, with bond ratings also being assigned by agencies like Fitch Ratings, Standard & Poor's, and Moody's.
Credit requirements are standards established by creditors that must be satisfied by potential debtors in order for credit to be given. These requirements typically reflect the applicant's ability to repay the loan or make payments for goods or services acquired.
Credit Risk encompasses both financial and moral risks associated with the possibility that an obligation will not be paid, potentially resulting in a loss.
A comprehensive overview of credit scoring, explaining the factors credit grantors consider to determine how much credit to grant to an applicant.
A comprehensive guide to understanding Credit Unions—a not-for-profit financial institution offering a full range of financial services.
Credit Watch is a term used by bond rating agencies to indicate that a company's credit rating is under review and subject to potential change, generally with the implication of a downgrade due to adverse events affecting its income statement or balance sheet.
Creditor refers to an individual or entity to whom money is owed by a debtor, with legal rights to demand and recover money.
An in-depth examination of creditworthiness, discussing the key factors that influence a person or company's ability to borrow money, including credit rating, credit scoring, and credit standing.
A comprehensive analysis of CROSS securities transactions, where the same broker acts as an agent for both buyer and seller, along with legal implications and operational aspects.
A Crown Loan is a financial device allowing demand loans to children or parents of lenders, designed initially by Chicago industrialist Harry Crown to confer tax benefits by falling under lower tax categories.
A detailed exploration of currency in circulation, encompassing paper money and coins within an economy, and its distinction from demand deposits in banks.
A custodial account is a financial account that parents or guardians create for a minor, typically at a bank or brokerage firm. Minors cannot make financial transactions without the approval of the account trustee.
A comprehensive guide to Debit Cards, their uses, functioning, and applications.
A detailed explanation of a Debit Memorandum, including its definition, types, special considerations, examples, historical context, and more.
A detailed exploration of debt instruments including their types, uses, and implications in finance and economics.
Detailed overview of debt retirement, including methods such as sinking funds, amortization, and prepayment.
Comprehensive overview of debt securities, including definitions, types, examples, historical context, applicability, related terms, FAQs and more.
An exhaustive definition of defaulted interest, detailing its implications, historical context, comparisons, and related terms.
A comprehensive overview of Deferred Contribution Plans, whereby unused deductions can be carried forward and utilized in future profit-sharing contributions, optimizing tax benefits for employers.
Comprehensive analysis of delinquency, covering its general meaning, financial context, types, and its distinctions from default.
A detailed description of what Delinquency Rate is, its calculation methods, importance, implications, historical context, and related terms in Finance.
A comprehensive definition of the term 'delinquent' which refers to payments that are overdue and unpaid, including related legal and financial aspects.
Demand Deposit accounts allow immediate access to funds without prior notice to the bank. Withdraw money via checks, cash from ATMs, or online transfers.
A detailed definition and explanation of a demand note, its types, special considerations, and historical context.
A detailed exploration of the concept of denomination, encompassing its definition, types, historical context, and applicability in various financial instruments.
Comprehensive guide to understanding deposits in transit, their importance in bank reconciliations, and their role in accounting.
Deposit insurance is a measure implemented to safeguard depositors by guaranteeing their deposits in case a financial institution fails. This article covers its types, applications, historical context, and more.
Comprehensive overview of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980, which provided for the deregulation of the banking system in the United States.
The Depository Trust Company (DTC) is a central entity for electronic exchange of stock and bond certificates, owned by major financial institutions and exchanges on Wall Street.
Direct Deposit is an arrangement whereby a dividend or other receipt can be deposited directly to the recipient's checking or savings account, often through electronic means.
The Discount Rate is a key concept, representing the interest rate the Federal Reserve charges banks for loans and the rate used to determine the present value of future cash flows.
A comprehensive guide to understand and calculate the discount yield on securities sold at a discount, such as U.S. Treasury bills. Details include the definition, formula, examples, and special considerations.
A discounted loan is a financial instrument offered or traded for less than its face value. This entry covers its types, applications, and examples.
An in-depth exploration of the refusal to make payment on a negotiable instrument, detailing the implications, legal considerations, and historical context.
Disintermediation refers to the process where savings are moved from traditional financial intermediaries such as banks to money market instruments like U.S. Treasury bills and notes.
Learn what DR (Debit) means in accounting, finance, and banking. Understand different types, special considerations, historical context, and more.
The dual banking system in the United States allows banks to be chartered by either state governments or the federal government, leading to differences in regulations, lending limits, and services offered to customers.
A comprehensive insight into Duff & Phelps, an independent financial advisory firm, established in 1932, offering a range of services including appraisals and credit analysis.
An in-depth guide to understanding Early-Withdrawal Penalties, specifically on fixed-term investments like Certificates of Deposit (CDs). This entry covers types, implications, examples, historical context, and frequently asked questions.
A comprehensive exploration of Edge Act Corporations, their role in international banking services, formation, regulatory framework, and impact on the global financial landscape.
A comprehensive guide to Education IRAs, also known as Coverdell Education Savings Accounts, including structure, benefits, and usage.
Explore how income from certain U.S. government bonds can be excluded from income tax when used to pay qualified higher education expenses. Learn about eligibility, benefits, and limitations associated with Series EE and Series I Bonds.
The effective date is the specific date on which an agreement, contract, or policy goes into effect. It plays a crucial role in various fields such as banking, insurance, and securities.
A detailed exploration of Effective Net Worth, including its definition, relevance, calculation, examples, and related terms.
An Electronic Funds Transfer System (EFTS) is any electronic transmission system that moves funds from one institution to another, replacing the need for physical exchanges such as paper checks. This article comprehensively covers EFTS’s definitions, types, historical context, applicability, comparisons with traditional methods, FAQs, and more.
The Equity Yield Rate is the rate of return on the equity portion of an investment, considering periodic cash flow and resale proceeds. This metric takes into account the timing and amounts of cash flow after annual debt service, but does not include income taxes.
An overview of Eurobanking, which involves accepting deposits and making loans in multiple currencies rather than the host country's currency.
The Eurodollar is a U.S. dollar held as a deposit in a bank outside the United States, mainly in Europe, commonly used to settle international transactions.
A comprehensive guide on Eurodollar Certificate of Deposit (CD), a CD issued by banks outside the United States primarily in Europe, payable in U.S. dollars, with typical minimum denominations of $100,000 and maturities of less than two years.
The European Central Bank (ECB) oversees monetary policy for the Eurozone, which includes 16 countries as of 2011. Its primary mission is to maintain price stability and issue the euro currency.
An exploration of Exact Interest, its calculation methodology based on a 365-day year, and its distinctions from Ordinary Interest, which operates on a 360-day year.
Excess Reserves are funds held by banks that exceed the reserve requirement set by financial authorities, such as the Federal Reserve System (FED).
An in-depth look at the Export-Import Bank, its roles, history, operations, and its impact on international trade.
An exit fee, commonly known as a back-end load, is a fee charged to investors when they withdraw funds from an investment fund.
Established in 1934 by Congress, the Export-Import Bank (EXIMBANK) of the United States aims to promote U.S. trade with foreign nations through financing exports and imports, offering direct credit, and providing guarantees. Its activities safeguard against commercial and political risks, and aid U.S. exporters.
Redirect entry for the term FACE, which points to specific terms such as FACE INTEREST RATE and FACE VALUE.
Understanding the Face Interest Rate on Bonds and Loans
Comprehensive explanation of face value, its significance in financial instruments such as bonds and checks, and comparison with market value.
The Fair Credit Reporting Act (FCRA) is a federal law that allows individuals to access and correct their credit records at credit reporting bureaus.
The Farm Service Agency (FSA) is an agency of the U.S. federal government that provides mortgage loans at below-market interest rates for farmers and individuals serving the agricultural community.
An in-depth look at Farmer Mac (Federal Agricultural Mortgage Corporation), its functions, history, and impact on the agricultural mortgage market.
Comprehensive overview of the Federal Deposit Insurance Corporation (FDIC), its history, purpose, and role in the financial system.
An in-depth explanation of Federal Funds and the Federal Funds Rate, including definitions, mechanisms, examples, historical context, and related terms.
A brief redirecting entry referring to the Federal Reserve Board, often abbreviated as the 'Fed.' The term is widely used in economic contexts relating to the central banking system of the United States.
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency established in 1933. It insures deposits up to $250,000 in member commercial banks and sometimes acts to prevent bank failures.
Detailed explanation of Federal Funds, including their roles in the banking system, types, examples, and historical context.
The Federal Home Loan Bank System was a federal credit system that provided credit reserves to savings and loan associations, cooperative banks, and other mortgage lenders, operating similarly to the Federal Reserve Bank's role with commercial banks.
The Federal Intermediate Credit Bank (FICB) is one of the 12 banks that make loans available to various institutions extending credit to agricultural producers. The stock of each bank is owned by farmers and ranchers.
An in-depth exploration of Federal Reserve Notes, their history, function, and significance in the U.S. financial system.
Detailed explanation of the Federal Reserve System, its structure, main functions, and historical context.
Comprehensive coverage of Federal Savings and Loan Associations including their role, history, scope, and special considerations.
FedWire is a high-speed, computerized communications network that connects Federal Reserve Banks, branches, and specific U.S. Treasury offices, facilitating instant financial transactions and reserve balance transfers.
An in-depth look at FHA Mortgage Loans, insured by the Federal Housing Administration (FHA), including the popular Section 203(b) program.
Understand what a FICO score is, how it is calculated, its historical context, and its implications for both consumers and lenders.
A comprehensive guide to understanding finance charges, including interest and discount points, and their applications in various forms of credit.
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization (SRO) that serves as the largest non-governmental regulator of securities firms in the United States. Created in 2007 through the consolidation of the NASD and NYSE's regulatory functions, FINRA oversees brokerage firms, branch offices, and registered securities representatives.
A comprehensive federal law passed in 1989 aimed at restructuring the regulatory and deposit insurance landscape for savings and loan associations and implementing reforms to address and prevent failures and nonperforming loans.
A comprehensive look at financial intermediaries, including types, functions, examples, historical context, and related terms.
