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Lesson 12 (Common business terminology)
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Discussion on banking business terminology.

Chandan Poddar
Teacher, Author and consultant. Presently teaching at

Unacademy user
  1. Balance Transfer - A balance transfer is the repayment of a credit debt with the help of another source of credit. In some cases, balance transfer also refers to transfer of funds from one account to another. Bank Account Bank account is an account held by a person with a bank, with the help of which the account holder can deposit, safeguard his money, earn interest and also make cheque payments

  2. Bank It is the interest rate at which the Central Bank in the discharge of its function as Banker's Bank lends to the commercial banks. Since this lending may be in the form of discounting of the securities pledged, it is also called the discount rate Basis Point It is a measure of change in financial parameters such as interest, stock indices and market rates. It is 1/100 of one percent.

  3. Bridge Financing Also, known as gap financing, bridge financing is a loan where the time and cash flow between a short term loan and a long term loan is filled up. Bridge financing begins at the end of the time period of the first loan and ends with the start of the time period of the second loan, thereby bridging the gap between two Iso known as gap financing

  4. Bounced Cheque A bounced cheque is nothing but an ordinary bank cheque that any bank can refuse to encash or pay because of the fact that there are no sufficient finances in the bank account of the originator or drawer of the cheque or same other valid reason

  5. Cap A cap is a limit that regulates the increase or decrease in the rate of interest and installments of an adjustable rate mortgage. Cashier's Cheque The cashier's cheque is drawn by a bank on it's own name to may payments other organizations, banks, corporations or even individuals.