Banking Terms and Glossary : Part - 8 [Alphabet J, K, L and M]
Essential for All Upcoming Bank Exams
Alphabet - J
- Joint Account - An account owned by two or more persons, one party can manage different or different transactions as determined by the Deposit Account Agreement.
Alphabet - K
- Kiting – The account is exempted extra, but by sending another check of another bank, write a check that creates insufficiency. For example, when booking the insurer's check, insufficient fund checks are deposited in your checking account, but the mortgage company is calculated to submit and submit check to check the payment.
Alphabet - L
- Letter of Credit (LC) – A formal document issued by the bank on behalf of a customer, the terms of which will honor the customer's commitments according to the terms and conditions of the bank.
- Line of Credit – A pre-approved loan approval with a specific debt limit on the basis of credit. One line of credit can be borrowed without each debt without a credit return.
- Local Check – The check payable through a bank in the same check processing area as the location of the depository bank branch. Depository bank is the bank which deposits the check. On February 27, 2010, the Federal Reserve added its processing centers to a processing center. Therefore, all checks are now considered local.
- Liquidity – The extent to which or the ease with which an asset may quickly be converted into cash with the least administrative and other costs.
- Long-term Liabilities – The money that has been owed for more than 12 months, such as mortgages, bank loans and other obligations.
- Late Charge – The set fee for a broker loan on any installments loan is generally expressed as a debt balance or a percentage of payment. Card issuer's penalties against the card provider's account, and the minimum payment failure.
- Loan Modification Provision – A loan agreement that allows a borrower or lender to make one or more changes to the terms of the original agreement permanently.
- Loan Document – There is a business agreement in which a borrower and lender entered into an agreement. The loans are classified according to the lender or the borrower, whether it is fraud, the maturity period, the terms of payment and other variables.
- Loan Risk – It means the risk of damages from borrowing money and the failure to pay the borrower due to actual reasons or deliberately.
- Lender – Borrow money with the expectation of an individual or financial institution that will return with interest.
- Loan-to-Value Ratio (LTV) – Loan Capital Ratio (Priced Rate) Valued Value (Sale Price) for example, in a house of $ 100,000 with a mortgage loan capital of 80,000 dollars, the loan-to-value ratio is 80 percent. LTV will affect the program for the borrower; generally, the low LTV, program conditions provided by the lender are more favorable.
- Lease – A contractual system in which a group (producer) gives the right to use an asset to pay for the rent of another party (producer).
- Loan Fee – The lender (in addition to the interest charged to the borrower) is a fee payable by a lender.
- Liquidation – The strong organization of all the resources of the firm is so strong that remains.
Alphabet - M
- Margin Security- It is a part of the value, which is not given as loans by banks or financial institutions.
- Market Capitalization – The overall value of securities or market capitalization or stock market sectors on the issue for a company. Calculate the number of shares issued by every market value of the shares.