Money Market Fund Vocabulary

Restrictive Endorsement

Limits the use of Negotiable instrument

Prime Rate

Lowest Rate of interest

Treasury Bond

Mature to 10-30 Years

Unsecured Loan

Nothing of value is pledged to the bank

Treasury Note

1,000-5,000 and matures

Blank Endorsement

Easiest to use but not recommended because it can be cashed by anyone if lost

Bank discount

Interest deducted in advance in a loan

Secured Loan

The borrower pledges something of value to the bank as security

Maturity Date

The date on which a loan must be repaid

Endorsement

Signature on the back that transfers a negotiable instrument

Cashier's Check

A check drawn on the bank that issues it payable to the person designated by the purchaser

Certified Check

A check which a bank certifies that a checking account customers funds are being held specifically to pay the check when presented

Treasury Bill

A security sold by the federal government to finance the cost of running the government

Money Market Fund

An account where investments are made mostly securely

Full Endorsement

Names the parties to receive it

Mutual Funds

Pools the money of many small investors for the purchase of stocks and bonds

Travelers Check

Purchased in fixed denominations by people who do not wish to carry large sums of cash

Under Writing

Selling a new issue of security

Investment Company

Specialize in a sale of a variety of stocks and bonds

Reconciliation Statement

Summary revealing any causes for any differences to check balance and bank balance

Negotiable Instrument

Written evidence, normally transferable from one person to another by endorsement

Check

Written order on a bank to pay previously deposited money to a third party on demand