Banking Glossaries-R

Ratio

Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.

Real property

Real estate, including land and buildings.

Recession

When the Gross Domestic Product declines for at least two consecutive three-month periods.

Reconciliation

Checking all bank account papers to make sure that the bank's records and your records agree.

Registered Education Savings Plan

Education savings plans that grow tax free until a child is ready to pursue a post-secondary education, at which time the money is withdrawn to help finance the costs.

Registered Retirement Savings Plan (RRSP)

A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.

Retail Banking

Those activities and services that a bank provides for individual customers such as savings accounts, personal loans, cheque cashing and RRSPs.

Retained earnings

All the profits or losses that you've accumulated from prior years and from this year's income statement, less dividends paid to you.

Return

Any increase in value or in income you earn on an investment.

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