What are the banking terminologies?

10 Essential Banking Terms You Need to Know

• Routing number. A nine-digit number that identifies your financial institution.
• FDIC. The Federal Deposit Insurance Corp.
• Certificate of deposit.
• APY.
• APR.
• Compound interest.
• Savings account.
• Returned item fee.

What is a bank in financial terms?

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks.

What is the meaning of banking and finance?

Banking and finance is the system that manages the circulation of money, the granting of credit, the making of investments, the acquisition of financing and the provision of banking facilities. This system is central to the efficient running of an economy.

What is basic financial terminology?

Balance: How much money you have, or owe, in an account. Assets: Items of value that you own. Debts: Money you owe to someone else, most likely a financial institution such as a bank. Net income: How much of your income you keep after paying your bills.

What are banking terms?

Direct Instruments :-. Cash Reserve Ratio (CRR): Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. Refinance Facilities: RBI offers refinance facility to help out the exporters by replacing an existing debt obligation with another. Statutory liquidity ratio (SLR): SLR is the minimum…

What are key financial terms?

Key Financial Terms You Should Know. P and L — or “profit and loss” sheet is a report statement on how much profit (or loss) your business has made over a given period. Calculate P and L at the end of every month so you can spot trends early on. Flash Report — in effect, an executive summary of your business fiances, or a daily P and L report.