Thursday, 2 February 2012

Cash ratio(liquidity ratio)

The ratio of the cash reserve that a bank keeps in coin banknotes ,to its total liabilities to its customers

Capped mortgage

A morgage in which the variable interest rate paid by the borrower cannot rise above a specified levels usually for the first few years of the loan

Capital turnover or Asset turnover

The ratio of sales of a companyy or other organization to its capital employed

Capital outflow

A decrease in a country foreigh assets held in its own country or an increase in assets held abroad

Capital Maintainance concept

The financial capital maintainance concept is that the capital of a company is only maintained if the financial or monetary amount of its net assets at the beggining at the period excluding and distribution to or contribution from owners.

Capital Inflow

An increase in a country in foreigh asset within its own country or a decrease in its assets held abroad

Capital impairment

A situation in which a bank has insufficient capital at risk to cover the risk it is undertaking either from a risk management or a regulatory perspective.

Capital Gain

The gain on the disposal of an asset calculated by deducting the cost of the asset from the proceeds received on its disposal

Capital Employed

Either the sum of the shareholders equity in a company and its long-term debts or the capital assets of a company plus its net current assets

Capital asset pricing model(CAMP)

A statistical model to explain the expected or avarage return on an investement.it assumes that this return will be composed of the risk free rate of return and a risk premium