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B&F Principle Unit 2

Banking and Finance Principles Unit 2

TermDefinition
Asset Anything of value
Equity The difference between what an item is worth and what is owed on it
Liability To banks, deposits represent this type obligation
Liquid Asset Anything of value that can be readily exchanged
Net Income The income that is left over after adding total revenue and gains and subtracting all expenses and losses for the reporting period
Niche Market A targeted smaller group of customers
Profit Revenue minus cost
Return on Assets The ratio of net income to total assets
Return on Equity Measures how well a bank is using its equity
Revenue Income that a company receives from its normal business activities
Spread The difference between interest paid and interest received
Created by: enix
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