|Federal Reserve (the Fed)|
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Definition of Federal Reserve (the Fed)
Federal Reserve (the Fed)
The central bank in the United States, responsible for setting interest rates.
The twelve district banks in the federal reserve System.
Board of Governors of the federal reserve System.
The central bank of the U.S., established in 1913, and governed by the federal
The central banking authority responsible for monetary policy in the United States.
An overly aggressive accrual of operating expenses and the creation of
An electronic funds transfer system used by businesses to remit taxes to the government.
Any excess of actual reserves above required reserves.
reserves of commercial banks in excess of those they are legally required to hold.
See federal reserve System.
Securities issued by corporations and agencies created by the U.S. government,
Agencies of the federal government set up to supply credit to various classes of
A federal institution that insures bank deposits.
A unique identification number issued
A federal institution that lends to a wide array of federal credit agencies funds it
Non-interest bearing deposits held in reserve for depository institutions at their district federal
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
Federal funds rate
This is the interest rate that banks with excess reserves at a federal reserve district bank
Federal Funds Rate
The interest rate at which banks lend deposits at the federal reserve to one another overnight.
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Federal Insurance Contributions Act of 1935 (FICA)
A federal Act authorizing the government to collect Social Security and Medicare payroll taxes.
Federal Open Market Committee (FOMC)
fed committee that makes decisions about open-market operations.
Federal Unemployment Tax Act (FUTA)
A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a
Federally related institutions
Arms of the federal government that are exempt from SEC registration and
A wire transfer system for high-value payments operated by the federal reserve System.
Foreign Exchange Reserves
A fund containing the central bank's holdings of foreign currency or claims thereon.
Forward Fed funds
fed funds traded for future delivery.
Fractional Reserve Banking
A banking system in which banks hold only a fraction of their outstanding deposits in cash or on deposit with the central bank.
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
Excess reserves minus member bank borrowings at the fed.
See foreign exchange reserves.
Legal Reserve Requirement
See reserve requirement.
Holdings of gold and foreign currencies by official monetary institutions.
The dollar amounts based on reserve ratios that banks are required to keep on deposit at a federal reserve Bank.
reserves that the central bank requires commercial banks to hold.
An accounting entry that properly reflects the contingent liabilities.
A foreign currency held by a central bank or monetary authority for the purposes of
A currency, frequently the U.S. dollar, that is used by other countries to denominate the assets they hold as international reserves.
See reserve requirement.
This calculation is used by states to determine the unemployment contribution rate to charge employers. The ongoing balance of a firm’s unclaimed
Specified percentages of deposits, established by the federal reserve Board, that banks must
Fraction of total deposits that a commercial bank is required by the central bank to hold in the form of reserves.
The percentage of different types of deposits that member banks are required to hold
Material that has been reserved for a specific purpose.
Commercial banks' reserves consist of their holdings of cash and their balances in deposits with the central bank. See also foreign exchange reserves, excess reserves, required reserves, reserve requirement.
Term Fed Funds
fed Funds sold for a period of time longer than overnight.
Bank for International Settlements (BIS)
An international bank headquartered in Basel, Switzerland, which
The interest rate that the federal reserve charges a bank to borrow funds when a bank is
The federal reserve facility at which reserves are loaned to banks at the discount rate.
Specialized banking institutions, authorized and chartered by the federal reserve Board
Initial margin requirement
When buying securities on margin, the proportion of the total market value of
Actions taken by the Board of Governors of the federal reserve System to influence the
Registered Pension Plan
Commonly referred to as an RPP this is a tax sheltered employee group plan approved by federal and Provincial governments allowing employees to have deductions made directly from their wages by their employer with a resulting reduction of income taxes at source. These plans are easy to implement but difficult to dissolve should the group have a change of heart. Employer contributions are usually a percentage of the employee's salary, typically from 3% to 5%, with a maximum of the lessor of 20% or $3,500 per annum. The employee has the same right of contribution. Vesting is generally set at 2 years, which means that the employee has right of ownership of both his/her and his/her employers contributions to the plan after 2 years. It also means that all contributions are locked in after 2 years and cannot be cashed in for use by the employee in a low income year. Should the employee change jobs, these funds can only be transferred to the RPP of a new employer or the funds can be transferred to an individual RRSP (or any number of RRSPs) but in either scenario, the funds are locked in and cannot be accessed until at least age 60. The only choices available to access locked in RPP funds after age 60 are the conversion to a Life Income Fund or a Unisex Annuity.
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