Summary of Comprehensive Business & Economics Glossary

## Introduction Finance is the study and practice of managing money, credit, investments, and banking. This material covers key vocabulary and core concepts you need to understand everyday personal finance, banking operations, and business payments. It breaks complex topics into digestible parts, gives practical examples, and compares related ideas so you can apply them even if you're learning remotely. ## Banking Basics ### Types of Banks > **Definition:** A bank is a financial institution that accepts deposits and makes loans. - **Retail bank** > A bank that offers services to individual customers rather than large companies. (Maloobchodná banka) - Example: A retail bank provides checking, savings, debit cards, and personal loans. - **Commercial bank** > A bank that provides services to businesses and individuals, including loans and deposits. (Komerčná banka) - Example: A business obtains a loan to expand operations. - **Investment bank** > A bank that helps companies raise capital and provides advisory services. (Investičná banka) - Example: An investment bank organizes an IPO (flotation). ### Accounts and Cards - **Savings account** > A bank account that earns interest and is used to store money for the future. (Sporiaci účet) - Used for emergency funds and saving toward goals. - **Current account** > A bank account used for everyday transactions, with money available on demand. (Bežný účet) - Used for payroll, bills, and daily spending. - **Debit card** > A card that allows the holder to transfer money electronically from their bank account. (Debetná karta) - **Credit card** > A card that allows borrowing money up to a certain limit to make purchases. (Kreditná karta) ### Loans, Mortgage, Overdrafts - **Loan** > A sum of money borrowed that is expected to be paid back with interest. (Pôžička / Úver) - **Mortgage** > A loan used to purchase property, where the property serves as collateral. (Hypotéka) - **Overdraft** > A deficit in a bank account caused by drawing more money than the account holds. (Prečerpanie na účte) Fun fact: Banks use reserve requirements and interest rates to influence how much money is available for loans and spending ## Payments and Transfers ### Methods and Instruments - **Transfer** > Moving money from one bank account to another. (Prevod) - **Cheque** > A printed form used to make payments from a bank account. (Šek) - **Cash** > Money in the form of coins or banknotes. (Hotovosť) - **Standing order** > An instruction to a bank to pay a fixed amount regularly to another account. (Trvalý príkaz) - **Direct debit** > An instruction to a bank to allow a third party to take money from an account. (Inkaso) ### Payment Concepts - **Balance** > The amount of money currently in a bank account. (Zostatok) - **Deposit** > A sum of money paid into a bank account. (Vklad) - **Repayment** > The act of paying back a debt or loan. (Splátka / Splatenie) ## Personal Finance Essentials ### Budgeting and Saving - **Budgeting** > The process of creating a plan to spend and save money. (Rozpočtovanie) - Steps: track income, list expenses, set goals, allocate amounts. - **Emergency fund** > Money set aside to cover unexpected expenses. (Rezerva / Fond pre nepredvídané udalosti) ### Assets and Investments - **Asset management** > The professional management of investments and assets for clients. (Správa aktív) - **Investment account** > An account used specifically for buying and selling securities. (Investičný účet) - **Fund** > A sum of money set aside for a specific purpose. (Fond) Did you know that diversification across asset types and regions reduces risk and helps stabilize long-term returns? ## Corporate Structure and Finance Terms - **Retailer** > A business that sells goods directly to consumers. (Maloobchodník) - **Affiliate** > An organization that is officially attached or connected to a larger organization. (Pridružená spoločnosť /