My mini dictionary

This mini-dictionary includes more than fifty words used in the field of banking and finance, as well as their definitions. To find a word, all you have to do is click on its first letter or perform a keyword search.

A

Account number

The account number is a virtual address to distinguish between bank accounts. Each month, people who have a bank account receive a bank statement with the number of their bank account on it.

ATM Cash Machine

The ATM Cash Machine is a machine that the bank makes available to its customers to allow them to withdraw money from their accounts more quickly and at any time. The customer inserts his/her bank card in the machine, types a PIN code on the keypad and selects the amount she/he wishes to withdraw. The customer must, of course, have previously deposited this amount in his account.

B

Bank
The Bank is a company offering financial products and services: • Receiving money • Granting loans • Provisioning and managing payment means (cheques, cards ...)

Bank agency

The bank agency is a public place where one can open an account or seek advice from a banker. Each bank has several agencies in several cities.

Banker

The banker is an employee of a bank, in charge of managing the accounts of bank customers. He warns us when we are spending too much money and gives us advice on how to manage our savings.

Bank account

We open a bank account with a bank to deposit money and withdraw it at any time. Money is safer when it is deposited in a bank.

Borrow

Borrow means to have somebody lend you something. When we borrow money from the bank, we sign a contract specifying the term of payment and the amount to pay each month. The bank will deduct a specific amount until it recovers the entire amount borrowed in addition to the interests.

Banknote

A banknote is a form of currency. The size and color vary according to the value of the banknote and allow us to recognize them. We use banknotes to pay for our needs. On every banknote, there are elements which prevent from counterfeiting. Only central banks have the right to produce banknotes.

Barter

Before money was invented, one had to barter to sell or buy something. Barter means exchanging an object against another. However, objects were not readily divisible and exchange was carried out as needed.

Budget

The budget includes all income and expenses. Establishing a budget is the first step to manage one’s income. Establishing a budget is not difficult, it is just an organized way of managing money, in order to control one’s expenses and put money in one’s savings.

Bank statement

The bank statement is a document that we receive from the bank each month, which states the transactions carried out in the bank account: revenues and expenses.

Bank deposit

Bank deposit means putting money in one’s bank account. We also call it supplying one’s account. Withdrawal is the opposite of deposit.

Banned from writing cheques

One becomes banned from writing cheques if she/he writes a cheque with an amount which is not available on her/his account. For example, if you have 500 DH on your bank account and you write a check of 600 DH, you will be listed in all banks as banned from writing cheques.

C

Cash

Cash is made of coins and bank notes. Cash payment means settling purchases using coins or banknotes, not a cheque or a credit card.

Cheque
By opening a bank account, you can get a cheque book in your name at the age of 18. It helps you pay for purchases and bills. By registering an amount on a cheque , it is taken into your bank account and paid to the bank account of the merchant who received the cheque.

Credit card

The credit card is a magnetic card that we slip into the ATM to withdraw money from the bank. We can also use the card to pay for our purchase at a merchant, by introducing it into a small device called Electronic Payment Terminal (TPE). To get a credit card, you must have a bank account.

Currency

Currency is the money of a country. In Morocco, the currency is the dirham. It consists of coins and banknotes. The word "currency" is often used synonymously with the term "money". Thus, the currency is the unit used to measure the price of goods and services.

Currency exchange

Currency exchange is the process of exchanging one currency against another. For example, if I travel in Europe, I have to convert my dirhams into Euro to do some shopping there. Similarly, people living abroad, and who come to Morocco, exchange their currency against the Moroccan Dirhams.

Company

Company is a structure where people work to produce goods or services to be sold in the market.

Commodity

Commodity is everything that can be bought and sold.

D

Debt

When someone lends us money, we are engaged to repay it. We then say that we have a debt towards this person. One can also borrow money from a bank.

Deposit

Deposit is the act of depositing money in a bank, which places in a bank account.

F

Foreign currency

Each country has its own currency. In Morocco, we have the dirham. In Europe, for example, their currency is the Euro. For Moroccans, the Euro is a foreign currency.

G

Gain

We gain money by selling something at a price that is more expensive than its purchase or production price. For example, if you buy a bike at 500 DH and you sell it at 550 DH, then you have gained 50 DH.

Goods
Goods are all products manufactured by companies. They include material goods, which can be stored, as well as intangible services, such as taking the bus or going to the hairdresser.

I

Insurance

Insurance is a contract between a customer and an insurance agency. The customer pays a sum of money regularly to the insurance agency. In case of a problem (car accident, fire, or disease, for example), insurance reimburses for unforeseen events.

Interests

By borrowing a sum of money in your bank, then your bank has made you a service. You must reimburse the money borrowed and an additional amount called interest. Interest can also be an amount the bank pays you if you possess a savings account, the bank gives you at the end of each year, an amount calculated as a percentage, called "interest".

Invest

A company must spend money to improve its production: that is what we call “investment”. For example, This company invests by purchasing new machinery that will enable it to produce cheaper goods. A company may also invest in research to make a new product.

Income

Income is an amount received in return for a work, investment, service or for a given social situation (pensions, family allowances, rent ...).

L

Loan

Loan is the money borrowed from the bank. To qualify, one must be able to pay it back, plus interest. These interests represent the cost of the service rendered by the bank. We often resort to loan when we want to buy something expensive like a house or a car.

M

Market

The place where commodity is bought and sold the goods is called a "market". There are all kinds of markets: food markets, flea markets for used objects …etc.

Means of payment

Besides coins and bank notes, there are other ways to make our purchases such as the cheque, credit card or bank transfer. All these elements are called means of payment.

Money
With money, you can make purchases. One can buy a good or service against money. This can take the form of banknotes, coins, bank cards or cheques.

P

Pay

Purchasing involves giving money in exchange for a good or service. In this case, we say that you pay cash.

Pocket money

Each week or month, some parents give money to their children. This is what we call pocket money. This amount allows to make purchases or to save money. The child learns to manage money and control expenses.

Paper money

Paper money consists of coins and banknotes. It is also called “fiduciary money”, from the Latin word “fiducia”, meaning confidence.

Profit

Profit is the money earned following an investment. Eg: "Bashir has made a profit by selling his shares on the stock market." We say that he made a profit or profits.

R

Receipt

The entire income of a person or a business.

S

Salary

To provide for their families, adults work for wages paid to them every month. Salaries vary depending on the job and on the field of work of each person.

Saving

Saving is the unspent portion of income. This part is saved to be used later, once enough money is saved, we can purchase more expensive things such as a car.

Savings book

A savings account is a special bank account where savings are deposited to grow. Everyone can have one, even a baby! You can ask your parents to create you a savings account where you can deposit your savings.

Share
The capital of an enterprise may belong to many people. This capital is thus divided into units called "shares". People who own shares are "shareholders".

Spend

Spending money means that we use it to make purchases. A person is considered wasteful if he buys too many things without controlling his expenses.

Sell

To sell a product or a service means exchanging it against a sum of money which equals its value

Services

Services are all intangible products produced by companies, governments or organizations. For example: a trip is a service, while a car is a good.

T

Taxes

The tax is an amount of money that individuals and businesses must pay to the state. The State uses these taxes, for example, to pay civil servants, teachers, nurses, military ... Taxes also allow the state to build roads, schools, hospitals ...

Transfer

It allows transferring money from one account to another. Often, employees receive their salaries by bank transfer from their employer.