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Capital market

International market where money can be raised for investment in business. A market where long-term financial instruments (shares, bonds, and other bills) are traded/exchanged.

Card account
Current account for posting card transactions. The issuing bank requires a minimum balance (which is blocked) to be maintained for preventing from unpermitted overdraft, when charging fees on off-line transactions.

A person who holds a credit card or a bank cash (debit) card.

Child deposit
Savings account opened with a bank in favor of individuals under age.

Security (such as movable or immovable property, or negotiable instruments, shares, goods) used to provide a total or partial guarantee for a loan repayment.

Consolidated financial statements
Financial statements of the subsidiary companies grouped together in the financial statements of the parent company.

Consumer loan
Short-term loan granted to individuals for the purpose of buying certain consumer goods, the latter themselves being taken usu. as security for the loan.

Contracted interest rate
Percentage rate agreed between the bank and its customers for borrowing money or for their investments in deposits with the bank. The rate is based on the basic interest rate set by the Central bank, the loan and deposit market environment, terms and the related risk.

Correspondent banking
Banks that have exchanged telex or SWIFT codes for information exchange on transfers, L/Cs, encashment, guarantees, etc. A further, higher level is opening correspondent accounts (nostro or loro accounts).

Credit bank
Bank which lends money.

Credit-borrower deserving trust, who is certain to repay debts promptly and therefore worthy of being allowed a credit.

Cross rate
Rates of exchange of two currencies, shown against each other, but in terms of a third basic currency.

Crossed cheque
Cheque with two parallel lines across it, usually by the drawer or with the words' account payee only' is aimed against any attempts of forgery. This cheque is not transferable and is paid only on the beneficiary’s bank account.

The monetary unit, forming the monetary system of a country (gold, silver, notes, etc.)

Currency Exchange
Deals on exchanging the money of one country for that of another, effected on the domestic and FC markets by the licensed financial institutions (banks, brokerage houses, etc.).

Currency Exchange Rate
Rate at which one currency is exchanged for another.

Currency Futures
Purchases of different types of foreign currency under a contract, providing for delivery of the stimulated currency at a fixed rate and at a fixed future date.

Currency Market
The volumes of currency traded at a market or market zones for a period.

Currency Operation
Agreement for trading currency at a contracted rate on a fixed price.

Currency Option
Agreement giving someone (holder) the possibility to buy or sell currency at a fixed price within a set period of time.

Currency Risk
Possible loss for a bank of fluctuating currency prices on the international markets.

Currency SWAP
Agreement to purchase a certain currency at the spot market and its parallel sale of the same volume at the forward market.