A bill of exchange is a financial instrument containing a written promise by one party (the issuer or drawer) to pay the other party (the drawee) a certain amount of money, either on demand or at a certain date in the future.
A promissory note usually contains all the terms relating to the debt, such as principal, interest rate, maturity, date and place of issue, and the signature of the issuer.
In terms of legal force, promissory notes are somewhere between the informality of an IOU and the rigidity of a loan agreement.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.
A bank run occurs when large groups of depositors withdraw their money from banks at the same time, out of fear that the institution will become insolvent.