red, or she has bought. If the

red, in the?An informal
term (‘in the red’) for the state of being overdrawn in a bank account. Even if the overdraft is
pre-arranged and within the agreed limits, it still represents a liability and is
therefore a negative balance
in terms of the account holder. Some bank accounts do not allow overdraft in
any circumstances and will fail to honour payments made by the account holder,
even standing orders (possibly leading to breaches of agreement and charges
external to the bank); others will allow the payments to be made (perhaps as a
goodwill measure, or where the account holder is a long-standing customer with
a regular income) resulting in overdraft. Pre-arranged overdrafts might carry
no charges within certain contractual limits, or could carry a small interest rate. In
standard Western
bank accounts, non-arranged overdrafts or overdrafts that exceed agreed limits
can typically carry charges and/or high rates of interest as
penalties. The term ‘in the red’ originates from the red ink used by banks on
statements to alert account holders to their overdrawn state. Some banks still
use the colour red to indicate overdraft, even on online-based readouts (see also black, in the).

reference rate?A benchmark
interest rate (for example the Libor)
used to calculate rates of interest of other products, for example, a
floating-rate security
or an interest rate swap.

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reserve price, reservation price?The lowest price at
which a seller is willing to sell, or the highest price at which a bidder is
willing to buy. This is particularly pertinent in an auction, where the seller does not want
to lose too much, or any, money
on something he or she has bought. If the reserve price is not reached in the
bidding process, the sale might be withdrawn permanently or an attempt might be
made to sell the item on another occasion. The reserve price can be public or

retail bank?A bank that is set up to
serve the public or small businesses, as opposed to commercial or merchant banks,
which deal with much larger amounts of money in individual transactions and
deal with large commercial organisations. Retail banks might be arms of larger
commercial organisations. A retail bank will go about its business in a way
that is marketed directly to the public, so will have branches in towns and
cities (which is why they are sometimes called high street banks) and will, for
example, advertise on TV and in other mainstream media rather than in business
publications. Typical services of retail banking are providing loans,
offering savings accounts and having current accounts where customers can
deposit and withdraw money freely.

return, returns?The profit (or loss) of a
particular venture.


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