Wednesday, December 28, 2011

2. (B) Basic Banking Guide A to Z


Back freight
Freight charges for the return of goods not accepted at the port of delivery mentioned in the bill of lading.

Back to back credit
Where a customer of a bank has received a letter of credit in his favor by foreign importer of the goods and on the strength / security of this credit his banker agrees to open another credit favoring actual supplier of the goods, the arrangement is called back to back credit.
It is very important to ensure that the document called for under the second credit should satisfy requirement of first credit. Only invoices are substituted for the ultimate buyers with the reason that he should not know that who actual seller of the goods is and there are chances that buyer can deal with the actual seller on subsequent occasions.

Bad debts
A debt account receivables, that is not likely to be paid by the debtors. Bad debts are treated as loss and finally written off.  A provision for bad debts is created, which have direct impact of the profitability of the bank. SBP being the regulator has given criteria for creating provisions for substandard, doubtful and bad loans.

Bai’ Bithaman Ajil
This is Islamic mode of financing of deferred payment sale

A person to whom personal property is delivered in bailment. A banker being bailee has no has no lien on the property kept for safe custody, except charges recoverable for safe keeping.

The act of delivering goods or personal property to another in trust for safe keeping and bailee is responsible for safe keeping of the goods. The services of providing Safe deposit lockers by the banks falls under bailment and locker application forms are designed considering clauses of bailment given in Contract Act .central bank (SBP) being regulator has instructed banks to provide insurance cover for the items kept in lockers. This insurance coverage is provided considering size of the locker.

A person who delivers personal property (goods or money) in trust to the bailee in a bailment agreement.

In accounting term balance is the difference between the total credit entries ad total debit entries. Bank Account Balance contains an entry for each day’s bank account balance. If on any point of time sum total of debit increases with the credit entries balance will be in debit, it will be called “over draft” because account is over drawn and customer is using banks funds.

Balance certificate.
At the request of the customer, a certificate is issued wherein the balance of customers account is advised by the bank under signature and stamp.

Balance of payment
An accounting record of all transactions made by a country over a certain time period, comparing the amount of foreign currency taken in to the amount of domestic currency paid out.
In economics, the balance of payments, (BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specific time period, usually a year. The BOP is determined by the country’s exports and imports of goods, services, and financial capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits). Balance of payments is one of the major indicators of a country’s status in international trade.

Balance of trade
The balance of trade is the difference between the monetary value of exports and imports of a country over a certain period of time. It is the relationship between a nation’s imports and exports. A favorable balance of trade is known as a trade surplus and consists of exporting more than is imported; an unfavorable balance of trade is known as a trade deficit or, informally, a trade gap.

Balance sheet
In accounting, a balance sheet or statement of financial position is a summary of an organization’s balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. 
A balance sheet is described as a snapshot of a company’s financial condition. Out of the three basic financial statements, the balance sheet is the only statement which applies to a single point in time.
A balance sheet has three parts, assets, liabilities and ownership equity. The assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.

Bank can be define as  an institution which has been recognized by the central bank of its country, to accept deposits repayable on demand or otherwise & withdrawal by cheques draft , order or otherwise which includes specialized bank i.e. Agriculture bank, investment bank, SME Bank, Microfinance Bank and Post Office Saving Bank etc. An other definition of the bank is “A bank is a financial institution whose primary activity is to act as a payment agent for customers to borrow and lend.”
Banking Companies Ordinance 1962 Sub Section © Banking Company means any company which transacts the business of banking in Pakistan and includes their branches and subsidiaries functioning outside Pakistan of banking companies incorporated in Pakistan.

Bank Account
A bank account is an account with a banking institution, recording the financial transactions between the customer and the bank. Bank accounts may have a credit, or debit balance. Accounts opened with the purpose of holding credit balances are referred to as deposit accounts; while accounts opened with the purpose of holding debit balances are referred to as loan accounts/ overdraft (cash Finance) account.

Bank charge
The term Bank charge covers all charges made by banks to their customers. It may be service charges or mark-up / profit charge on any financial accommodation. SBP has instructed bank & financial institutions to properly display their schedule of charges on notice board and profit / mark-up to be charged or paid to their customers on all type of asset & liability products including consumer products. 

Bank credit
The borrowing facility provided to a customer by the bank in the form of credit or a loan.  

Bank Draft
Demand draft is an order to pay money drawn by one office of a bank upon another office of the bank or its correspondent, for sum of money, payable to order on demand. The drawee bank shall be discharged by payment in due course. Since this is an order instrument, it is transferred through negotiation. DDs are generally drawn on other cities as such these are purchased for making payment in other cities.

Bank inspection
Examination of a bank's assets, liabilities, income, and expenses-as well as operations by representatives of the State bank of Pakistan as regulatory authority to ensure that the bank is solvent and is operating in conformity with banking laws and sound banking principles.

Bank reconciliation statement.
A form that allows individuals to compare their personal bank account records to the bank’s records of the individual’s account balance in order to uncover any possible discrepancies.
A company’s general ledger account Cash contains a record of the transactions (checks written, receipts from customers, etc.) that involve its checking account. The bank maintains a record of the customer s checking account when it processes the customer’s cheques, deposits, service charges, and other items. Bank mails a statement to the customers on close interval. When the customer receives its bank statement, they should verify that the amounts on the bank statement are compatible with the amounts in the company’s Cash account in its general ledger and vice versa. This process of confirming the amounts is referred to as reconciling the bank statement or bank reconciliation, 

A banker is one who conducts the business of banking individually as employee, or as a member of a company. He she is also an individual who is responsible for the smooth daily operation of the financial institution. This individual must ensure that they comply with institution rules and regulations as well as pertinent laws.  A banker advises his clients with regard to financial matters such as savings, loans, taxes, investments. The banker will provide financial assistance to the client in accordance with their required needs as per policy of the bank and central bank being regulator.

Banker’s lien
An enforceable right of a bank to hold in its possession any money or property belonging to a customer and to apply it to the repayment of any outstanding debt owed to the bank, provided that, to the bank’s knowledge, such property is not part of a trust fund or is not already held against other debts. Bank under general lien have right to sale the property after giving reasonable notice to the customer. 

Banker’s opinion
Bankers exchange opinion about their existing as well as prospective customers regarding their financial position. For import and export bankers take opinion about buyer / seller abroad. The banker receive opinion should keep it secret. While replying enquires selection of words should be carefully made to convey right impression and in the last a disclaiming clause should be added. Such as “opinion is given at your request, without any responsibility of this bank or its official”  

Bank Holiday
A bank holiday is a  holiday on which banks are closed for public dealing but it is a full working day for bankers. 1st January and 1st July and First day of Ramzan are treated as bank holiday.  Bank holidays are often assumed to be so called because these are days upon which banks are shut from out side, but in fact the  bankers use to up date their books and record .

Banking channels
Banking channels are the specific, prescribed, or official course or means through which customers can enjoy facilities of banking. Such as branch premises, ATM, ordinary mail, telephone (Phone Banking),  internet (internet banking)

Banking Day
Any business day on which a bank is open to the public for carrying on to a large extent all of its banking functions. 

Banking ombudsman
Ombudsman means a commissioner appointed by the Government to investigate any complaints against the body concerned. In Pakistan, ombudsman is called Mohtasib. For banking sector government have appointed a separate Mohtasib whose appointment is for the period of three years and is not eligible for any extension. The office of the Banking Mohtasib (BM) was established under banking companies ordinance 1962 by inserting seven sections from 82-A to 82-G on 2nd June, 1997 and through the banking companies amendment Act 1997.The purpose of the establishment of Banking Mohtasib is to resolve any complaints from customers against the bank and schedule bank against other bank. This is a free service which covers all banking services. 

Banking policy & regulation department (BPRD)
A department of State bank responsible for making banking policies rules and regulations and their implementation, customer’s protection etc.

Bank Mark-up 
The profit charged by the banks on financial accommodations i.e. over draft, loans, financing of foreign trade etc.

Bank notes
A promissory note, payable on demand payable to bearer, issued by central bank of the country and intended to circulate as money (Currency, official medium of exchange). The State Bank of Pakistan (SBP) has the responsibility for the production and issue, reissue and cancellation of Pakistan’s currency notes. 
The SBP manages its note issue responsibilities through its Note Issue Department which arranges for Pak currency notes to be printed by Security Printing press a separately incorporated wholly owned government organization.

Bank rate
Bank rate referred to the discount rate, which a central Bank charges on the advances against eligible bills /securities (treasury bills) that it extends to commercial banks and other financial institutions. Changes in the bank rate are often used by central banks to control the money supply / inflation.

A person who does not have means to pay off his liabilities / financial obligations. Bankruptcy can be of two types voluntary bankruptcy by debtors himself or involuntary bankruptcy filed by creditors, who believe the debtor has committed an act of bankruptcy by cheating or concealing assets the creditors. In both cases, the objective is a fair and equitable settlement of claims and distribution of assets. 

Bank statement
On half yearly basis, after 30th June and 31st December each year, the bank provides a statement of customer’s account. It shows all deposits made, all cheques paid, and other debits posted during the period as well as the current balance. The customers can also take statement, any time during the year against charges.

Bank sweep arrangement
Through this arrangement, customer instruct bank to create a link of  sweeping between two accounts , a demand deposit account and an profit bearing account or a borrowing account, where automatic transfers goes between the accounts.

Barren money
Idle money, money not invested.

Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. They used barter. It is the exchange of personal possessions of value for other goods that you want. This kind of exchange started about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of 19th century in Asia and some parts of Africa.

Basel II
Basel II is the second of the Basel Accords, consist on the recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II, , is to create an international standard that banking regulators should use when finalizing regulations about size of capital banks against the types of financial and operational risks banks face. Basel II attempts to accomplish this by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposures through its lending and investment. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.
The final version aims at:
1. Ensuring that capital allocation is more risk sensitive; 
2. Separating operational risk from credit risk, and quantifying both; 
3. Attempting to align economic and regulatory capital more closely to reduce the scope for regulatory arbitrage. 

Base rate 
Base rate is the minimum lending rate. In money market it is called prime rate or call rate. Base rate is determined by each bank considering their cost of funds. Deposit and lending rates are determined by taking into account base rate. 

Basic Banking Account (BBA)
Bank collect service charges from the customers, if they do not maintain a minimum balance in their account fixed by the bank in their policy document pertaining to the deposit product. BBA accounts were introduced by SBP vide BPD circular No 30 dated 29th November 2005 with    the purpose to facilitate low income people in Pakistan with following Special features. 
* Minimum Initial deposit Rs. 1000/-
* No profit is paid in BBA account.
* No limit for minimum balance.
* If account remains Nil for continuous Six months, account will be closed.
* No fee can be recovered for maintaining BBA account.
* Maximum Two deposit & two Cheque withdrawals are allowed free of charges in a month.
* Unlimited free of charges ATM withdrawals are allowed from banks own ATM.
* Incase of withdrawal from ATM of any other bank, that bank can recover charges.
* A regular banking account can be converted to BBA account on Customers request/ consent.
* A joint account can be opened as BBA.

An abbreviation generally used for bill of exchange.

A speculator in stock market who sells stocks in falling market with the hope to buy more cheaply at a latter date. If the markets fall by more than 20% then we have entered a bear market. A bear market is a market showing a lack of confidence. 

Bearer is the person who comes in the possession of a negotiable instrument payable to bearer. Bearer cheque means a cheque which is expressed to be payable to the bearer. Title of bearer cheque passes by simple delivery, with an intention to transfer the title.

Below par
The term below par is relating to a security that sells at less than face value or par value. For example, a Rs.1,000 par bond with a market price of Rs.950 is below par. In money market if future rate of purchase or sale of any currency is below than the spot rate, this is also called below par.

Beneficial owner
A person who enjoys the benefits of ownership even though title is in another name, actual owner.

Beneficiary is a person company or association designated as the recipient of funds or other property under a will, trust, insurance policy bill of exchange, cheque  letter of credit etc.

Bid is an offer or proposal of price. 
A statement of a sum of money which one will give for something to be received, or will take for something to be done or furnished.
An offer made by an investor, a trader or a dealer to buy a security etc.

Bid bond
The bid bond is designed to back up the commitment of the participants in the tender(s) and to restrict their withdrawal from the bid(s) prior to its Validity, or they do not easily refuse to accept the award of a contract in their favor. Each participant is required to submit such bond as a condition of being permitted to bid for the contract. The call mechanism is normally a demand letter to be presented by the beneficiary to the issuing bank within expiry date of the bid bond. Bid bonds therefore, secure payment of the guaranteed amount

Big five
This refer to the big five private sectors bank namely, Allied Bank of Pakistan limited, Habib bank limited, Muslim Commercial  Bank limited, National Bank of Pakistan & united Bank limited.

Bilateral contract
This is a reciprocal arrangement between two parties under which both parties promise to perform an act in exchange for the other party's act. Each is an obligor on its own promise, and an obligee on the other party's promise

Bilateral trade agreement (BTA)
A Bilateral trade agreement (BTA) is a trade agreement between any two countries, usually in order to reduce tariffs and quotas on items traded.

In banking word bill refers to bill of exchange. In ordinary course of business it generally refers to a statement of money owed for goods or services supplied, it also refers to a legislation presented in parliament for discussion.

Bill Broker
A bill broker is a money dealer who buys, sells, discounts, or negotiates treasury bills & other securities.

Bill for collection
A cheque down n a branch which is not member of same clearing house (drawn on other city) is sent for collection. At the time of lodgment of bill/ cheque a contra voucher’s passed for record keeping and on realization/ return contra is reversed.

Bill for negotiation
Negotiation of bill of refers to the purchase of bill of exchange and shipping documents, which the exporter has issued after shipment according to L/C, D/P. or D/A. Negotiation is not the bank’s obligation but decision of negotiation is based on a transaction agreement with the exporter and importer. In order to protect its claims, the bank prudently examines whether there is any discrepancies between L/C or contract terms and presented documents and if document presented are in conformity with L/C / contract bank may negotiate documents. Required documents for negotiation are

* An application for negotiation of shipping documents 
* L/C or the original copy of an export contract document 
* Documents required in L/C or an export contract document.

Billing cycle
The time interval between the dates on which periodic bills are issued.

Billing date
The date and month on which a periodic or monthly bill is generated. In consumers credit, it includes appropriate finance charges, minimum payment due, and new balance.

Bill of Exchange
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.(bearer bill of exchange can be issued by the Government)
Bill of entry
Bill of entry is a statement of details of goods received at a customhouse as imports and amount of duties and other taxes paid duly signed by custom authorities. After submission of bill of entry by the importer to his bank and its reporting to the regulators, the transaction of import is treated as complete.

Bill of lading
A bill of lading (sometimes referred to as a BOL or B/L) is a document issued by a carries to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to consignee who is usually identified. A through bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. B/L is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense, i.e. it governs all the legal aspects of physical carriage, and, like a cheque or other negotiable instruments, it may be endorsed affecting ownership of the goods actually being carried.
Bill of lading is normally issued in the sets of two or three and some copies are retained by the master of the ship or shipping company.

Bills payable (B/P)
In banking bills payable refers to the value received instruments (pay order, demand draft, cashier / bankers cheques etc) not yet presented for payment and outstanding in the books as bills payable. It also refers to the outstanding liability of an accepted bill such as acceptance under Usance L/C.

Black money
Fraudulently obtained money, money obtained as bribe or any other unfair means, money on which no tax is paid.

Blank cheque
A cheque that has no numerical value (amount) written in, but is already signed. Blank cheque can be extremely dangerous for their owner, because whoever obtains the cheque could write in any amount of money and would be able to cash it.

Blank endorsement
simple signature on the reverse of a negotiable instrument that does not name a transferee and that makes the instrument payable to bearer called also endorsement in blank

Blank transfer
Transfer share etc without writing the name of transferee. When financing is taken against the pledge of shares transfer deeds are signed as blank.

Blanket policy
Blanket Insurance is an insurance policy that covers more than one piece of property at a specific location or multiple items at multiple locations for a fixed time. For example banks obtain cash insurance cover for their branches and insurance company provides cover of say 20 million per branch.

Block account
This is a bank account from which funds cannot be withdrawn for any of a number of reasons, for example, marking as security, liquidation of a company, or government orders, accounts of terrorist organizations, etc.

Blue chip
Blue chip is equity in the securities of high quality companies. It also often refers to high price ordinary shares, “Blue chips” or “blue chip stock” demonstrate some combination of high credit rating, strong balance sheet, stable earnings power shares of high class companies. 

Board of directors
Board of directors is a governing body of the bank. Its directors are elected normally by the shareholders . The board has the ultimate decision-making authority and, in general, is empowered to (a) set the bank's policy, and overall direction, (b) name members of the advisory, executive, finance, and other committees, (c) hire, monitor, evaluate, and fire the CEO and senior executives, (d) determine and pay the dividend, and (d) issue additional shares. Members of the board generally include CEO/ president of the bank.

Bona fide
It is a Latin word  means “good faith,” it signifies honesty, the “real thing” and, in the case of a party claiming title as “bona fide” holder, it indicates innocence or lack of knowledge of any fact that would create doubt on the right to hold title.

A certificate of ownership of a specified portion of a debt due to be paid by a government or corporation to an individual holder such as national prize bond, WAPDA bearer bonds etc. it also refers to surety bond issued favoring custom authorities from the person holding dutiable goods.

Bonded Goods
Goods kept in the custom bonded where houses, till the time duty thereon is paid.

Bonded where house
A Bonded warehouse is a warehouse in which goods on which the duties are unpaid are stored under bond and in the joint custody of the importer, or his agent, and the customs officers. The importers have to pay duties when the goods were removed. Previous to the establishment of bonded warehouses, the payment of duties on imported goods had to be made at the time of importation, 

BONUS, refer to something extra beyond a stipulated payment. A BONUS is a gift to reward performance, paid either by a private employer or by the Government: 
A bonus based on salary; such as profit bonus performance bonus. 
An extra dividend to the shareholders of a joint stock company, out of accumulated profits

Bonus share
Bonus share refer to the free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares of the company, but it does not increase value of equity. Because, through bonus shares profit of the company is capitalized.

Book debt
Refer to the Accounts receivable. It is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn pay it within an established timeframe called credit or payment terms.

Book entry
Book entry is a system of tracking ownership of securities where no certificate is given to investors; only an entry is passed in the ledger. 

Books of account
books of account are the record in which commercial transactions are recorded,  such as Journals, ledgers, and other classified records comprising a firm’s set of accounts.

Book value
Book value is the value of asset on which it is reported in the balance sheet of the company, fore example purchase value minus accumulated depreciation= book value.

Borrowing power
Borrowing power is the amount a customer can legally borrow to finance his / her company working capital, development requirements or property purchase etc. Customers borrowing power is determined by looking at their income purpose of advance financial commitments, as well as credit history. A minor do not have any borrowing power because he can not enter into a valid agreement. A limited company’s borrowing powers are defined in memorandum of association and company’s directors exercise these powers

Bouncing of cheque
A cheque would ‘bounce’ if the bank where it is drawn detect anything wrong with it e g- anti dated, post dated, unsigned, wrongly signed difference in amount of words and figure, etc. A cheque may also bounce if the amount in customers  accounts is lower than the amount on the cheque e.g. a cheque of Rs. 5000 will bounce if customer has only have Rs 2000 in is account

A branch is a retail location where a bank or other financial institution offers a wide range of face to face and automated services to its customers.                                       

Branch banking                                                                                                                                            
The branch is the only channel of access to a financial institution’s personalized services. Services provided by a branch include cash withdrawals and deposits from a account with a banks teller, financial advice through a specialist, safe deposit box rentals, remittance, etc. As of the early 21st Century, features such as automated teller machines (ATM), telephone and online banking, allow customers to bank from remote locations and after business hours. This has caused financial institutions to reduce their branch business hours and to merge smaller branches into larger ones.

Branchless banking (BB)
Branchless Banking (BB) is a new delivery channel to offer banking services in a cost effective manner; at customer’s office residence or at point of sale (POS).SBP being regulator has issued regulation regarding branch less banking (BB) According to these regulations, only authorized Financial Institutions (Fis) can provide Branchless Banking services. The Bank/ FI should prepare policies & procedure manuals, strengthen existing risk management & audit functions as required and identification of partners, service providers and agents should be done, because financial institutions cannot take on BB without the help of other market players like telecom companies, technology service providers, agents etc. The mobile phone banking constitutes large part of branchless banking. BB activities include opening and maintenance of BB Account, account-to-account fund transfer, person-to person fund transfers, cash-in and cash-out, bills payment, merchant payments, loan disbursement/repayment and remittance. SBP has also covered regulations regarding consumer protection and consumer awareness which should be part of the BB policies. Customer protection against risks of fraud, loss of privacy should also be covered in policy manual, because consumers trust /confidence are the basic requirement for the growth of BB. 

Breach of trust
Breach of trust is a violation of duty by a trustee. On the subject of liability for breach of trust, our criminal law is in a very unsatisfactory condition. The common law did not make breach of trust a crime as between one man and another.

Break-up value
Net asset value of a business, computed on the basis of it being sold as a ‘gone concern.’ It is the most conservative method of business valuation because the assets are priced individually (as disparate pieces, and not as functional units together with other assets) at their forced liquidation value. Also called breakup basis.The sum-of-parts value of a publicly traded company. This value is derived by analyzing each business segment of a company independently. This is usually applied to large cap stocks that are likely to operate in several different markets or industries. A breakup value analysis may be brought about by investors if the market cap of the stock is less than the breakup value for a prolonged period of time. 

Bretton Wood conference
In the first three weeks of July 1944, delegates from 44 nations gathered at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The delegates met to discuss the postwar recovery of Europe as well as a number of monetary issues, such as unstable exchange rates and difficult trade policies. The delegates at Bretton Woods reached an agreement known as the Bretton Woods Agreement to establish a postwar international monetary system of convertible currencies, fixed exchange rates and free trade. To facilitate these objectives, the agreement created two international institutions, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank). The intention was to provide economic aid for reconstruction of postwar Europe. An initial loan of $250 million to France in 1947 was the World Bank’s first accommodation. 

Bridge financing
Bridge financing involves the extension of an interim loan that allows the borrower to maintain financial stability for a short time, in anticipation of raising funds from shares subscription, or a long term loan. It serves as a financial bridge between available finances today and what is anticipated to accrue in a short time. The concept of bridge financing allows financial transactions to continue without being waiting for expected funding. Bridge financing is a short-term solution with the expectation that long-term funds will be available within weeks or few months.

A broker is a party that mediates between a buyer and a seller. It can be an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. 

The fee, or commission, given or changed by a broker for transacting business between buyer and the seller.

Budget is an itemized summary of estimated or intended expenditures for a given period along with proposals for financing them. It is an estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person, a family or a group of people, a business, government, country or multinational organization or just about anything else that makes and spends money.

Budget account
This is a bank account established to control a person’s regular expenditure, for example, the payment of insurance premiums, mortgage, utilities, or clubs bills etc. The annual expenditure for each item is paid / transferred into the account, bills being paid from the budget account as they become due.

Budgetary control
Budgetary control is the control techniques whereby actual results are compared with budgets. Any differences (variances) are made the responsibility of key individuals who should either exercise strict control actions or revise the original budget.

Bull is the heavy muscular physique operator. He is the speculator in the stock exchange who buys stock in anticipation of rise in the prices. Bull is characterized by optimism, investor confidence and expectations that strong results will continue.

Bullish market
This is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. The use of “bull” and “bear” to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are descriptions for the movement of a market. If the trend is up, it’s a bull market. If the trend is down, it’s a bear market.

The precious metals are called bullion, when smelted and not perfectly refined, or when refined, but in bars, ingots or in any form uncoined, as in plate. The word is often often used to denote gold and silver, both coined and uncoined, when reckoned by weight and in mass.

Business day
Any day on which offices of a bank are open to the public for carrying on all of the bank's business.

Buyer I a person who buys; a purchaser

Buyer credit
A financing provided to a buyer to pay for the supply of goods or services usually by an exporting country or by the supplier company. These credits are generally for large amount and repayable in a relatively longer period.

Buyers market
A market which has more sellers than buyers. This will result into low price because, excess of supply over demand. This trend is also called soft market, opposite of seller’s market. With the current decline in home values in America, home sellers would have come to believe that selling their home is a total loss deal.


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