Glossary of Financial Terms

R

Real Property

A property and any permanent building or fixture located on it.

Refinance

The act of renegotiating a loan, (or loans) with more suitable terms, usually over a longer period of time.

Registered Education Savings Plan

"RESP" - An account established to provide funds for the future education of one individual, while providing a more immediate tax benefit to the account holder.

Registered Retirement Savings Plan

"RRSP" - An account established to provide income in a person's retirement years.

Regular Interest Bond

A term describing Canadian Savings Bonds that earn simple interest until maturity.

Repurchase Agreement

The selling of a security or other asset with an agreement in place to repurchase that security or asset at a later, specified time.

Resident Company

A bank or other financial company that may only provide service in the currency native to its geographic location.

RESP

A Registered Education Savings Plan or RESP is a registered savings account used to save for a child's post-secondary education in Canada. The government of Canada contributes money to the RESP with various amounts depending on money contributed and combined income of the parents.

· See Also · Canadian Education Savings Grant · CESG

Retail Banking

Banking services provided mainly to individuals as opposed to businesses or organizations.

Retained Earnings

A company's after-tax profit that is not paid out to shareholders but is retained by the company (i.e. not paid out in dividends).

Return

The amount of money earned on an investment compared to its purchase price expressed as a percentage.

· See Also · Yield

Revolving Credit

A credit arrangement that allows the borrower to borrow a specific amount, pay all or some of that amount back, and borrow again up to a specific amount. ie: Credit Card

Rule of 72

The "rule of 72" refers to a very simple method of calculating an investment's doubling over time. As an example if an interest rate on an investment is 9% a year you would divide 72/9 to derive an amount of 8. Thus, it would require 8 years for an investment at 9% a year to double.

Albert Einstein formulated the Rule of 72.

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