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Denomination

• Is the stated Par Value of a credit instrument. A common amount is $1,000 however, other amounts may be specified.

 
 Embedded terms in definition
 Credit
Par value
Par
 
 Referenced Terms
 Certificate of deposit: Abbreviated CD. Also called a time deposit, this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD bears a maturity date and a specified interest rate, and can be issued in any Denomination. The duration can be up to five years.A time deposit with a specific maturity evidenced by a certificate. Large-Denomination CDs are typically negotiable.A short-term debt security, which can have a maturity period of anything from a few weeks to several years; interest rates are established by market conditions and competitive environment.A CD is a note issued by a bank for a savings deposit that an individual agrees to leave invested in the bank for a certain term. At the end of this term, on the maturity date, the principal may either be paid to the individual or rolled over into another CD. Interest rates on CDs between banks are competitive. Monies deposited into a CD are insured by the bank, thus they are a low-risk investment. Maturities may be as short as a few weeks or as long as several years. Most banks set heavy penalties for premature withdrawal of monies from a CD. Large-Denomination CD's are typically negotiable.This is a negotiable instrument. Involves fixed maturity, 2 weeks to 8 years. Face values under $100,000. The interest rates are competitive with T-Bill rates. Early withdrawals are subject to significant penalty. Holder must pay state and local taxes (unlike T-Bills). Explicitly covered by the deposit insurance.

 Money market certificates: Abbreviated MMCs. Six-month certificates of deposit with a minimum Denomination of $10,000 on which banks and thrifts may pay a maximum rate tied to the rate at which the U.S. Treasury has most recently auctioned 6-month bills.

 Regulation q: Fed regulation imposing lids on the rates that banks may pay on savings and time deposits. Currently, time deposits with a Denomination of $100,000 or more are exempt from Reg Q.Fed regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a Denomination of $100,000 or more are exempt from Reg Q.

 Regulation q: Fed regulation imposing lids on the rates that banks may pay on savings and time deposits. Currently, time deposits with a Denomination of $100,000 or more are exempt from Reg Q.Fed regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a Denomination of $100,000 or more are exempt from Reg Q.

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