Letter of Hypothecation: The term used for a letter from an
exporter to his bank authorizing it, in the event of the importer failing to
accept or pay a bill of exchange, to sell the goods exported and remit the
proceeds less expenses.
Liabilities: Refers to any claims, actual or potential, of an
individual or institution. The term usually refers to financial liabilities of
which the commonest form has been a debt of any kind. Thus, some deposits,
which are banker’s debts, are commonly termed as ‘deposit liabilities.’
Lien: Means a claim against property. A bond is usually secured by
a lien against specified property of the company.
Liquid Assets: Means assets
either in the form of money or which can be quickly converted into money.
Liquidity: The term indicates availability of cash, and of assets
readily convertible into cash (called liquid assets), to meet immediate
obligations a volume of reserves plus credit facilities, reflected in an
ability to meet current financial liabilities in cash.
Loans: These are of two types a) Demand loans (payable in 12 to 18
months) like gold loans, crop loans b) Term loans (Payable in installments)
like housing loan, personal loan.
Mortgage: Refers to the conveyance of property by a debtor
(mortgager) to a creditor (mortgagee) as security for a debt, with a condition for
a debt, with a condition that the property will have to be reconvened on
payment of the debt.
Micro Finance: A type of banking service that is provided to
unemployed or low income individuals or groups who would otherwise have no other
means of getting those services.
Near Money: The assets which are readily convertible into money.
Continued...7
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COPY-WRITE OWNED BY PRAMOD KUMAR
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