Wednesday, June 16, 2010


Definition: The act of transmitting, or the state of being transmitted as, the transmission of letters, writings, papers, news, and the like, from one country to another; the transmission of rights, titles, or privileges, from father to son, or from one generation to another.

The right possessed by an heir or legatee of transmitting to his successor or successors any inheritance, legacy, right, or privilege, to which he is entitled, even if he should die without enjoying or exercising it.

The gears that transmit power from an automobile engine via the driveshaft to the live axle.
"A bank is an institution, usually incorporated with power to issue its promissory notes intended to circulate as money (known as bank notes); or to receive the money of others on general deposit, to form a joint fund that shall be used by the institution, for its own benefit, for one or more of the purposes of making temporary loans and discounts; of dealing in notes, foreign and domestic bills of exchange, coin, bullion, credits, and the remission of money; or with both these powers, and with the privileges, in addition to these basic powers, of receiving special deposits and making collections for the holders of negotiable paper, if the institution sees fit to engage in such business."

The real business of the banker is to obtain deposits of money which he may use for his own profit by lending it out again."

The bank undertakes to receive money and to collect bills for its customer's account. The proceeds so received are not to be held in trust for the customer, but the bank borrows the proceeds and undertakes to repay them. The promise to repay is to repay at the branch of the bank where the account is kept, and during banking hours. It includes a promise to repay any part of the amount due against the written order of the customer addressed to the bank at the branch..... Bankers never do make a payment to a customer in respect of a current account except upon demand."

"....a company which caries on as its principal business the accepting of deposits of money on current account or otherwise, subject to withdrawal by cheque, draft or order...."

"An establishment for the custody of money received from, or on behalf of, its customers. Its essential duty is to pay their drafts on it: its profits arise from the use of money left unemployed by them."

. Receiving money on deposit from its customers;
. Paying a customer's cheques or drafts on it to the amount on deposit by such customers, and holding Dominion Government and bank notes and coin for such purpose;
. Paying interest by agreement on deposits;
. Discounting commercial paper for its customers;
. Dealing in exchange and in gold and silver coin and bullion;
. Collecting notes and drafts deposited;
. Arranging credits for itself with banks in other towns, cities and countries;
. Selling its drafts or cheques on other banks and banking correspondents;
. Issuing letters of credit;
. Lending money to its customers on the customers' notes, by way of overdraft (or) on bonds, shares and other securities

commercial bank
An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals, yet some may be members of the Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses.

investment bank
An individual or institution which acts as an underwriter or agent for corporations and municipalities issuing securities.Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. also called investment banker.

Federal funds
Funds deposited by commercial banks at Federal Reserve Banks. Designed to enable banks temporarily short of their reserve requirement to borrow reserves from banks having excess reserves.

prime rate
The interest rate that commercial banks charge their most creditworthy borrowers, such as large corporations. The prime rate is ragging indicator also called prime.

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