F. Ernest Jerome
| Commercial paper | Promissory notes issued by large corporations to borrow funds for a short term.
(See page 258.)
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| Demand loan | A loan where the lender is entitled to demand full repayment of the loan at any time without notice.
(See page 262.)
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| Discounting a payment | The process of calculating a payment's present value.
(See page 254.)
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| Discount rate | The interest rate used in calculating the present value of future cash flows.
(See page 254.)
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| Face value | (of a Treasury Bill) The amount paid at maturity of a Treasury Bill or commercial paper.
(See page 258.)
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| Fair market value | A price established by competitive bidding among many buyers and sellers.
(See page 254.)
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| Guaranteed Investment Certificate (GIC) | A fixed-term non-redeemable deposit investment that earns a predetermined rate of interest.
(See page 250.)
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| Loan repayment schedule | A table presenting details of interest charges, payments, and outstanding balances on a loan.
(See page 263.)
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| Revolving loan | A loan arrangement in which advances and repayments of principal are at the borrower's discretion (subject to a minimum monthly payment requirement and a credit limit).
(See page 262.)
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| Savings account | A deposit account that offers essentially unrestricted withdrawal privileges.
(See page 250.)
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| Treasury bill | A promissory note issues (at a discount to face value) by the federal government or a provincial government to borrow money for a short term.
(See page 257.)
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2003 McGraw-Hill Higher Education