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