Carte Blanche

A A A

DEFINITION

A French term meaning "blank document." Carte blanche is commonly used in English to refer to a check that has been signed but does not have a dollar amount written in. The recipient of such a check then writes in whatever dollar amount he or she wants/needs.

INVESTOPEDIA EXPLAINS

The term carte blanche is more commonly used figuratively than literally. It usually means someone in power has given someone else the unconditional authority to spend money in a given situation and/or make decisions about that situation. This term is commonly used in politics and business. Carte blanche arrangements are often a bad idea because of their high potential for abuse.




RELATED TERMS
  1. Check Conversion

    A reformatting service offered by banking merchants. Check conversion allows ...
  2. Bounced Check

    A slang word for a check that cannot be processed because the writer has insufficient ...
  3. Rubber Check

    Another name for a "bounced check." A rubber check is a slang term used for ...
  4. Certified Check

    A type of check where the issuing bank guarantees the recipient of the check ...
  5. Blank-Check Company

    A company in a developmental stage that either doesn't have an established business ...
  6. Blank Check Preferred Stock

    A method companies use to simplify the process of creating new classes of preferred ...
  7. Average Revenue Per User (ARPU)

    A measure of how much income a business generates, given the size of its customer ...
  8. Money Market Account

    An interest-bearing account that typically pays a higher interest rate than ...
  9. Compound Interest

    Interest calculated on the initial principal and also on the accumulated interest ...
  10. Straight Credit

    A type of letter of credit. A straight credit can only be paid at the counters ...
Related Articles
  1. Should You Pay In Cash?
    Budgeting

    Should You Pay In Cash?

  2. The Ins And Outs Of Bank Fees
    Options & Futures

    The Ins And Outs Of Bank Fees

  3. Your First Checking Account
    Insurance

    Your First Checking Account

  4. When, Why And How To File A Complaint ...
    Credit & Loans

    When, Why And How To File A Complaint ...

  5. 10 Bank Promotions That Pay You To Open ...
    Personal Finance

    10 Bank Promotions That Pay You To Open ...

  6. What's a better way to borrow money: ...
    Savings

    What's a better way to borrow money: ...

  7. What are the pros and cons of overdraft ...
    Credit & Loans

    What are the pros and cons of overdraft ...

  8. Banking Perks for the Rich That Will ...
    Personal Finance

    Banking Perks for the Rich That Will ...

  9. Asset Turnover Ratio
    Investing

    Asset Turnover Ratio

  10. Inside National Payment Systems
    Economics

    Inside National Payment Systems

comments powered by Disqus
Hot Definitions
  1. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
  2. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  3. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  4. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  5. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  6. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
Trading Center