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Callable CD

A certificate of deposit (CD) (a time deposit) that pays its holder a fixed interest rate over its lifespan, and...

Cross-Border Positions

In banking, this refers to asset and liability positions of a bank vis-à-vis banks and non-banks located abroad, i.e., in...

Collateral

A borrower's pledge of a property to a lending bank in order to secure repayment of a loan. In this...

Compound Interest

The interest that results from adding interest to the principal amount (loan, deposit, debt, etc). In this sense, interest earned...

Benchmark Rate

In the realm of banking, it refers to the interest rate used as a benchmark lending rate. Many banks use...

London Interbank Offered Rate

The interest rate at which banks borrow funds from each other, in marketable size, in the London interbank market. This...

Fiat Money

The component of the money supply in an economy which is directly created by the government or central bank, such...

Outside Money

The component of the money supply in an economy which is directly created by the government or central bank, such...

LIBOR

It stands for the London Interbank Offered Rate, i.e., the interest rate at which banks borrow funds from each other,...

ABCP

An abbreviation for asset-backed commercial paper; a short-term instrument that is backed by the cash flows from specific assets (e.g....