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GLOSSARY
Executor
An executor is one who settles a decedent's estate by accounting for all assets, providing for payment of liabilities, and ensuring that the decedent's wishes are carried out. Executors can be appointed by the estate owner before death or appointed by the court.
Exempt from withholding
Exempt from withholding describes taxpayers who, upon meeting certain requirements, don't need income taxes held back from their paychecks.
Exemption
Exemption is an allowed reduction of taxable income, which results in a lower tax liability. Exemptions are available for various circumstances; an example is the tax break allowed for those who have dependent children living with them.
Eximbank
Eximbank is a federal agency that offers various financial services to domestic exporters. In the U.S., the complete name of the agency is Export-Import Bank of the United States. The U.S. Export-Import Bank provides financing and insurance services, specifically to small business exporters.
Existing home sales
Existing home sales is a report issued monthly by the U.S. National Association of Realtors containing home sales data for one month, including the number of transactions and the sale prices. The report only includes transactions related to existing residences, and doesn't include new construction or the sale of newly built homes.
Exordium clause
Exordium clause is the introductory section of a will. Exordium clauses usually contain information pertaining to the identity of the person who wrote the will, and general legal verbiage that defines the document as a valid will.
Exotic mortgage
Exotic mortgage is a term used to describe any nontraditional mortgages. These mortgages allow homeowners to be able to afford high-priced homes. Buyers are sometimes allowed to defer principal or interest payments to a later date. These mortgages are historically risky for both the borrower and the lender.
Exp ratio
Exp ratio, or expense ratio, pertaining to mutual funds, is the quotient of expenses divided by net assets. The resulting percentage is indicative of the cost to operate the fund each year. A higher expense ratio indicates a lower yield, because assets that are used to cover expenses are not invested, and are therefore not producing value and income gains.
Expensing
Expensing is the practice of running business costs through the income statement rather than capitalizing them on the balance sheet. Tax legislation determines whether the costs to run a business are expensed or capitalized. Generally, costs associated with the purchase of items that have more than one year of useful life are capitalized, although exceptions to this rule are available for small businesses.
Experian
One of the three credit bureaus along with Equifax and Transunion.
Explicit interest
Explicit interest is the actual interest cost of a loan, expressed in dollars.
Export-Import Bank
Export-Import Bank, or Eximbank, is a federal agency that offers various financial services to domestic exporters. In the U.S., the complete name of the agency is Export-Import Bank of the United States. The U.S. Export-Import Bank provides financing and insurance services, specifically to small business exporters.
Express account
An express account is a deposit account with check-writing capabilities that offers customers reduced monthly fees in return for limited access to bank tellers. Express account customers can usually use the ATM, telephone banking, or online banking services free of charge, but they are charged to use bank tellers.
Extended IRA
An extended IRA is a tax-advantaged retirement account that can be passed on to two generations of beneficiaries. If an original IRA accountholder dies while there are still assets in the account, those assets are passed on to the designated beneficiary, who's called the first-generation beneficiary. With an extended IRA, the first-generation beneficiary can distribute the assets until his death, and pass what's left to someone else, called the second-generation beneficiary.
Extended warranty
An extended warranty is a purchased arrangement that pays for replacing or fixing an item if it breaks after the dealer's warranty expires. Extended warranties are like insurance policies, where specific coverages can vary widely among providers. Extended warranties are sold for things like cars, consumer electronics, and appliances; they can be purchased from the manufacturer or from a third party.