BOB LBO key terms

A comparison of two quantities of the same kind, expressed as a fraction or with a colon, showing how many times one value contains the other.

An equation stating that two ratios are equal, often used to find an unknown value when three parts of a comparison are known.

A fraction expressed as a part of one hundred, used to compare quantities on a common scale and to measure increase or decrease.

Interest calculated only on the original principal for the whole period, using the formula principal times rate times time divided by one hundred.

Interest calculated on the principal plus previously earned interest, so the amount grows faster than under simple interest over the same period.

The original sum of money borrowed, lent, or invested, on which interest is calculated before any additions or deductions are made.

The sum of a set of values divided by the number of values, giving a single figure that represents the typical size in that set.

The comparison of selling price with cost price to determine gain or loss, usually expressed as a percentage of the cost price.

The amount paid to acquire or produce an item, including related expenses, used as the base for calculating profit or loss percentage.

The amount for which an item is actually sold to a buyer, compared against cost price to determine whether a transaction yields profit or loss.

A category of problems about how long individuals or groups take to finish a task, based on the rate at which each works.

A technique that first finds the value of one unit and then multiplies it to obtain the value of the required number of units.

An arrangement of items in which the order matters, calculated by multiplying successive descending integers from the total number of items.

A selection of items in which order does not matter, found by dividing the corresponding permutation count by the factorial of the number chosen.

A number between zero and one expressing how likely an event is, computed as favourable outcomes divided by all equally likely outcomes.

A form of logical reasoning with two premises and a conclusion, tested by checking whether the conclusion necessarily follows from the given statements.

A diagram using overlapping circles to show how sets relate, useful for testing whether a logical conclusion is valid across all possible arrangements.

A puzzle type that describes family links through statements or symbols, requiring the candidate to identify how two people are related.

A reasoning topic in which a person moves through turns and distances, and the candidate must determine final position or facing direction.

A puzzle where people are placed in rows or around a circle subject to clues about neighbours and positions, and the full order must be deduced.

A broad reasoning category covering floor, box, scheduling, and grouping puzzles where scattered clues must be combined into one consistent arrangement.

A reasoning task in which words or letters are transformed by a rule, and the candidate must apply or identify that rule to new items.

A reasoning item presenting a pair of related items and asking the candidate to find another pair linked in the same way.

A reasoning task in which several items are given and one must be identified as different from the rest on the basis of a shared property.

A sequence of numbers, letters, or figures following a hidden pattern, where the candidate must supply the missing or next element.

An unstated idea that must be true for a given statement or argument to hold, commonly tested in critical reasoning questions.

A conclusion drawn from given information that is likely but not guaranteed, distinguished from a statement that is certainly true.

A statement that follows necessarily from the given premises, used in reasoning questions to test whether a claim is definitely valid.

A word having the same or nearly the same meaning as another word, tested to check the candidate's breadth of English vocabulary.

A word with a meaning opposite to another word, used in vocabulary questions to test precise understanding of word meaning.

The practice of choosing the correct word or meaning based on the surrounding sentence, rather than on isolated dictionary definitions.

A passage-based task requiring the candidate to grasp main ideas, details, tone, and implied meaning, then answer questions accurately.

A passage with words removed at intervals, where the candidate selects the option that best restores meaning and grammatical sense.

A grammar task in which a sentence is divided into parts and the candidate identifies the part containing a grammatical mistake.

A question type where a marked portion of a sentence must be replaced by the option that makes it grammatically and logically correct.

The grammar rule that a verb must match its subject in number and person, a frequent source of errors in correction questions.

A set of sentences given out of order that must be rearranged into a coherent paragraph using logical links and pronouns.

The way sentences in a paragraph connect through linking words, pronouns, and repeated ideas so the text reads as one unit.

A borrower's ability to service debt from regular income, assessed through income stability, existing obligations, and monthly surplus.

The process a lender uses to evaluate a loan proposal, covering the borrower's character, income, collateral, and overall repayment ability before sanction.

An asset pledged by a borrower to secure a loan, which the lender may sell if the borrower fails to repay as agreed.

A loan on which interest or principal has remained overdue for a specified period, signalling that recovery has become doubtful for the lender.

Know Your Customer: the mandatory process of verifying a customer's identity and address before opening an account or granting a loan.

Rules and monitoring systems that banks use to detect and report attempts to disguise the origin of illegally obtained funds.

A centralised software system that connects a bank's branches so customers can transact at any branch and records update in real time.

National Electronic Funds Transfer: a retail payment system that settles individual fund transfers between banks in batches through a central clearing house.

Real Time Gross Settlement: a system that transfers high-value funds individually and immediately, without netting, between participating banks.

Immediate Payment Service: an instant, round-the-clock interbank transfer facility available through mobile and internet banking channels.

Unified Payments Interface: a platform that lets users link bank accounts to a single app and pay instantly using a virtual address.

A network security device or program that inspects incoming and outgoing traffic and blocks connections that violate a set of rules.

A fraud technique in which attackers impersonate a trusted entity by email or message to trick users into revealing passwords or account details.

Any software written to damage, disrupt, or gain unauthorised access to a computer system, including viruses, worms, and trojans.

The core software that manages hardware resources and provides services so application programs can run on a computer.