Fichas
Chapter 11 Key Terms
Fichas del conjunto (17)
- 1Bank DiscountThe amount of interest charged by a bank on a note.
- 2Bank Discount RatePercent of interest.
- 3Contingent LiabilityPotential liability that may or may not result from discounting a note.
- 4Discount PeriodAmount of time to take advantage of a cash discount.
- 5Discounting a noteReceiving cash from selling a note to a bank before the due date of a note. Steps include; 1. calculate maturity value 2. calculate number of days bank waits for money 3. calculate bank discount 4. calculate proceeds
- 6Effective RateTrue rate of interest. The more frequent the compounding, the higher the effective rate.
- 7Face ValueAmount of insurance that is stated on the policy.
- 8Interest-Bearing NoteMaturity value of note is greater than amount borrowed since interest is added on.
- 9MakerOne who writes the note.
- 10Maturity DateDate the principal and interest are due.
- 11Maturity Value (MV)Principal plus interest (if interest is charged)
- 12Non-interest Bearing NoteNote where the maturity value will be equal to the amount of money borrowed since no additional interest is charged.
- 13PayeeOne who is named to receive the amount of the check.
- 14ProceedsMaturity value less the bank charge.
- 15Promissory NoteWritten unconditional promise to pay a certain sum at a fixed time in the future.
- 16Simple Discount NoteA note in which bank deducts interest in advance.
- 17Treasury BillLoan to the federal government for 91 days, 182 days, or 1 year.
Información
- Descripción
- Promissory Notes, Simple Discount Notes, and the Discount Process
- Creado por
- MYKALA ERDKAMP · jul 2017
- Actualizado
- 26 jul 2017
- Visitas
- 37
- Etiquetas
- Valoración