Finance - Banking (Exam Material)

*overdraft* {Ans: amount by which bank account withdrawals exceed deposits}*credit, to* {Ans: deposit money into an account}*security* {Ans: another term for "collateral"}borrower {Ans: person or organization that borrows something}loan {Ans: money given to another party in exchange for future repayment}interest {Ans: fee charged by a lender to a borrower for the use of borrowed money}*principal* {Ans: original sum invested or lent}in the red, to be {Ans: informal term for being 'overdrawn'}*deposit* {Ans: sum of money paid into a bank account}interest rate {Ans: percentage of a borrowed amount which is paid to a creditor}*default, to* {Ans: failure to repay a loan}*mortgage* {Ans: loan in which real estate is used as collateral}account {Ans: record of financial transactions maintained by a bank for a customer}in the black, to be {Ans: informal term for having a healthy bank balance}liquidity {Ans: company's ability to pay its bills from cash or from assets that can be turned into cash quickly}*instalment* {Ans: sum of money due as one of several equal payments for something, spread over an agreed period of time}statement {Ans: printed record of bank account balance and transactions}*debit,