Banking terms beginning with E

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Alphabetical List

Earnest Money:

Good assurance amount of money allotted to seal an agreement is known as Earnest Money. For instance, in case of a contract to buy realty or an assurance fee to guarantee an advance payment of money by the lender, is referred as Earnest Money. In realty business, the amount is implied to the buying cost and is paid if the buyer is unsuccessful in following the terms and conditions of the contract.

EFT (Electronic Fund Transfer):

EFT or Electronic funds transfer indicates to electronically supported systems employed to execute pecuniary operations by electronic means. EFT is used for a host of concepts such as credit/debit card holder dealings, online payments by the cardholder, direct investment payroll compensations for some kind of dealing by a company to its members of staff, online bill payment, electronic Indian and international banking, etc.

EMI ( Equated Monthly Installment):

Equated monthly installment is the payment that you make latest by a specified date on a monthly basis to service a loan regularly. The EMI consists of two things – principal and the interest components. Principal is the cost of the asset for which you have taken the loan. Interest is the cost that you pay for it. Changes in EMI are affected due to change in Benchmark Prime Lending Rate ( BPLR) or the Floating Reference Rate ( FRR ).


Endorsement is a legal word that indicates to the signing of a credential which permits for the authorized transfer of a transferable amount from one person to another. In Insurance term, Endorsement is referred to as Rider, which acts as an inclusive prerequisite to an insurance strategy.

Equilibrium real interest rate:

Equilibrium real interest rate is the rate at which the complete labor employment and manufacturing capability is constant, supported by the performance of the actual Gross Domestic product in the long run. Equilibrium real interest rate is required as a yardstick to review whether the considered actual interest rate is profitable or not.


The discrepancy between the cost of an asset and the sum of money possessed on the asset is referred as Equity. In other words it is the total sum of money the property owner attains when the assets are traded.

Expansionary fiscal policy:

Guidelines implemented by the government to alleviate the financial system of the country, particularly, by regulating the levels and allotments of tariffs and government spending. During the phrase of slow-moving financial system, the government reduces tax impositions, giving extra privilege to taxpayers to elevate their levels of expenditure.

Expansionary monetary policy:

The strategy implemented by the central bank of the country to control the cost and accessibility of funds and investments. They are implied to endorse economic objectives of a country either by increasing or decreasing interim interest rates, etc. When a nation undergoes deflation, the government orders to print more currency and circulate it in order to support inflation.

Last Updated on 1/18/2012