refers to relieving an individual, corporation, or government entity in financial trouble. Bailout bond A bondissued by the Resolution Funding Corporation (Refcorp) to save the failing savings and loan associations in the late 1980s and early 1990s. Baker Plan A plan by former U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from commercial banks. Balance of payments A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year. Balance of trade Net flow of goods (exports minus imports) between two countries. Balance on goods and services Netting of transaction balances, including the net amount of payments of interest and dividends to foreign investors and investments, as well as receipts and payments resulting from international tourism. Also known as Trade Balance. Balance sheet Also called the statement of financial condition, it is a summary of a company'sassets, liabilities, and owners' equity. Balance sheet exposure See: Accounting exposure. Balance sheet identity Total assets = Total liabilities + Total stockholders' equity. Balanced budget A budget in which the income equals expenditure. See: budget. Balanced fund An investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fund This is a fund that buyscommon stock, preferred stock, and bonds. The same as a balanced fund. Balloon interest In the context of serial bondissues, the elevated coupon rate on bonds with late maturities. Balloon maturity Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement. Balloon Payment See: Bullet. Balloon Payment The final (large) payment that repays all the remaining principal and interest of a partially amortized or unamortized loan. Ballot The document distributed at the annual meeting to shareholders of record who wish to vote their shares in person. BAN See: Bond anticipation note. Bank-based corporate governance system Organization of a supervisory board so that it is dominated by bankers and corporate insiders. Bank anticipation notes (BAN) Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded longterm through the sale of a bond issue. Bank collection float The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. Bank discount basis A convention used for quoting bids and offers for Treasury bills in terms of annualized yield, based on a 360-day year. Bank draft A draft addressed to a bank. Bank holding company A company that owns or has controllinginterest in two or more banks and/or other bank holding companies. Bank Insurance Fund (BIF) A unit of the Federal Deposit Insurance Corporation (FDIC) that provides deposit insurance for banks excluding thrifts. Bank for International Settlements (BIS) An international bank headquartered in