Banking Terminology 4/8

Crossing: Drawing two parallel lines across the face of a cheque the effect of which is to make it necessary to pay it into a banking account.

Current Account: These accounts are given to the business persons, institutions, companies etc. and in this no interest is paid. There is no restriction on the number of transactions.

Dear Money: A period when rates of interest are high, so that borrowing is expensive.

Debt: Refers to a sum of money, or quantity of goods or services, owned by one individual or body to another.

Deed: It is a legal document or written agreement. There are different types of deeds like deed of assignment, deed of partnership etc.

Deflation: Supply of Goods is more, demand is less because purchasing capacity of public is less.

Demand Draft: It is a bill of exchange and negotiable instrument.

Demonetization: To deprive a coin or note of its value.

Deposits: Deposits are of two times a) Demand Deposits like current account, savings account and b) Term or Time deposits like fixed deposits, recurring deposits.

Discount: 1) An inducement offered by a creditor to debtors to pay promptly.

2) A deduction from the catalogue price of an article generally allowed by a wholesaler to a retailer, that is, trade discount.

3) With reference to a bill of exchange, to discount a bill means to acquire it by purchase for a sum less than its face value, the amount of this discount depending partly on the length of the unexpired term of the bill and partly on the amount of risk involved.

4) When a recently issued stock falls below its issue price it is said to stand at a discount.

Dishonour: A bill of exchange is dishonored when the drawee has insufficient funds to discharge it when it falls due for payment. Similarly, a cheque is dishonored when the drawee has insufficient funds to meet it.

Drawer: One who makes out or writes the cheque

Continued...5

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