Personal Finance
Default Probability
Default Probability The default probability is a statistical measure that estimates the probability of a borrower defaulting on a loan. It is used in credit scoring models to assess the credit worthiness of an applicant. Calculation: The default probability is calculated using historical data on loan defaults. It is typically calculated as the number of […]
Tsp,Thrift Savings Plan
TSP Thrift Savings Plan The Thrift Savings Plan (TSP) is a retirement savings plan offered by the United States government to its civilian employees. It is a tax-deferred savings plan, which means that you don’t have to pay taxes on your contributions or withdrawals until you retire. Eligibility: All federal civilian employees Many state, local, […]
Da,Dearness Allowance
The dearness allowance is a financial benefit paid to government employees in certain cities to compensate them for the cost of living in those cities. It is calculated based on the cost of living index (COLI) of the city. Eligibility: Government employees who are posted in cities where the COLI is higher than the national […]
Agent Bank
Definition: An agent bank is a bank that acts on behalf of another bank (the principal bank) to provide financial services to customers. The agent bank is not the owner of the funds deposited by customers but acts as their agent and depository. Key Features: Agency relationship: Agent banks act as intermediaries between the principal […]
Vostro Account
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Payment Protection Plan
Definition: A payment protection plan is a type of insurance policy that protects your payments from fraud or accidental errors. It typically covers charges made with credit cards, debit cards, and mobile wallets. Key Features: Payment reimbursement: Covers eligible losses resulting from fraudulent or accidental errors. Zero liability: Negates your liability for unauthorized charges, up […]
Zero Liability Policy
Zero Liability Policy A zero liability policy is a marketing strategy or promise that guarantees that a company will not hold customers liable for any losses or damages resulting from the company’s negligence or actions. Explanation: Negligence: In negligence law, a company is responsible for the damages it causes to others due to its actions […]
Appraisal Fraud
Appraisal Fraud Appraisal fraud is the illegal act of manipulating the appraisal process to deceive lenders and other stakeholders. It involves making false or misleading appraisals, typically to inflate the value of a property. Types of Appraisal Fraud: Over-appraisal: Inflating the value of a property beyond its true market value. Under-appraisal: Reducing the value of […]
Judgmental Credit Analysis
Judgmental Credit Analysis Judgmental credit analysis is a type of credit scoring model that relies on a human analyst’s judgment to assess an applicant’s credit worthiness. This approach is typically used for complex lending decisions or when there is a need for a more thorough evaluation of the applicant’s credit history. Key Features of Judgmental […]
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