Banking and Business

Terms	Definitions
Deregulation	the process of removing constraints, especially government imposed economic regulation
Liquid asset	cash or eaily convertible into cash (ie money-market funds, US T-Bills, bank deposits, etc.)
Profit	net income the excess of revenues over outlays in a given period of time
Spread	the difference in interest paid to bank depositors and collected by bank customers
Bank run	a series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed
Commercial lending	financial intermediary that supplies checking accounts, savings accounts, credit cards, investment services, etc.
Consumer loans	loans for individual, family, or household purposes
demand deposit	a bank deposit from which withdrawals can be made without notice
Insurance	promise of reimbursement in the case of loss
Securities	financial instruments (such as bonds or stocks) that can be traded freely on the open market
Stock	shares entitling holders to an ownership interest (equity) in a corporation
Investments	commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument
Retirement plan	a plan for setting aside money to be spent after retirement
Financial planning	a comprehensive strategy designed to help individuals achieve specific financial goals and prepare for unexpected life challenges or events
Wealth	the value of all assets owned net of all liabilities owed
Tax strategies	a plan of action designed to limit the amount of taxes paid
Risk management	process of determining the maximum acceptable level of overall risk
Trusts	something (as property) held by one party (the trustee) for the benefit of another (the beneficiary)
Estate planning	process of arranging financial affairs so that wealth will be distributed according to wishes after your death and avoid undue taxation
Credit	money available for a client to borrow
FDIC	Federal Deposit Insurance Corporation insures deposits of customers in member banks up to $250,000 against loss
Mortgage	a loan to acquire real estate with the property in question as collateral
Equity	the difference between the market value of a property and the loans held against it
Collateral	a security (item) pledged for the repayment of a loan