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Financial Terms | |
Federally related institutions |
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Definition of Federally related institutionsFederally related institutionsArms of the federal government that are exempt from SEC registration and
Related Terms:Accidental Dismemberment: (Credit Insurance)Provides additional financial SECurity should an insured person be dismembered or lose the use of a limb as the result of an accident. Amortization (Credit Insurance)Refers to the reduction of debt by regular payments of interest and principal in order to pay off a loan by maturity. Arms indexAlso known as a trading index (TRIN)= (number of advancing issues)/ (number of declining Asset-Backed SecuritiesBond or note SECured by assets of company. Asset-backed securityA SECurity that is collateralized by loans, leases, receivables, or installment contracts authoritythe right (usually by virtue of position or rank) to use resources to accomplish a task or achieve an objective Available-for-Sale SecurityA debt or equity SECurity not classified as a held-to-maturity SECurity or a trading SECurity. Can be classified as a current or noncurrent investment depending on the intended holding period. ![]() Beneficiary (Credit Insurance)The person or party designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor. Best-interests-of-creditors testThe requirement that a claim holder voting against a plan of reorganization Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which SECurities are not represented by engraved pieces of paper but are maintained in computerized records at the Borrower (Credit Insurance)A consumer who borrows money from a lender. Commercial Business Loan (Credit Insurance)An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes. Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired Consumer creditcredit granted by a firm to consumers for the purchase of goods or services. Also called Consumer Credit Protection ActA federal Act specifying the proportion of Convertible securityA SECurity that can be converted into common stock at the option of the SECurity holder, ![]() CreditMoney loaned. CreditBuying or selling goods or services now with the intention of payment following at some time in CreditOne side of a journal entry, usually depicted as the right side. CreditA rating of a company's credit (ability to payback debt), usually by a third party credit agency. creditOn your bank statement, 'credit' represents funds that you have deposited into your account. The opposite of a credit is a debit. Credit analysisThe process of analyzing information on companies and bond issues in order to estimate the credit analysisProcedure to determine the likelihood a customer will pay its bills. credit bureauAn organization that provides financial institutions with credit information concerning existing or potential customers who are looking to obtain credit services. credit cardA revolving source of credit with a pre-established limit. You have to pay interest on a credit card if you have an outstanding balance. Credit CrunchA decline in the ability or willingness of banks to lend. Credit enhancementPurchase of the financial guarantee of a large insurance company to raise funds. ![]() Credit LossA loan receivable that has proven uncollectible and is written off. credit memoA record of the funds which have been credited to your account. Credit periodThe length of time for which the customer is granted credit. credit policyStandards set to determine the amount and nature of credit to extend to customers. Credit RationingRestriction of loans by lenders so that not all borrowers willing to pay the current interest rate are able to obtain loans. Credit riskThe risk that an issuer of debt SECurities or a borrower may default on his obligations, or that the Credit RiskFinancial and moral risk that an obligation will not be paid and a loss will result. Credit scoringA statistical technique wherein several financial characteristics are combined to form a single Credit spreadRelated:Quality spread Credit TermsConditions under which credit is extended by a lender to a borrower. Credit Unioncredit unions are community based financial co-operatives and most offer a full range of services. All are owned and controlled by members who are also shareholders. credit unions are regulated provincially and insured by a stabilization fund, deposit insurance or guarantee corporation. Crediting rateThe interest rate offered on an investment type insurance policy. CreditorLender of money. CreditorPerson or business that is owed money. Creditor (Credit Insurance)A lender or lending institution that offers financing and loans to a borrower, for the purpose of acquiring a commodity. Creditor Proof ProtectionThe creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules. CreditorsPurchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a Critical Illness Insurance (Credit Insurance)Coverage that provides a lump-sum payment should you become seriously ill with a specified illness. The payment is made to your creditors to pay off your debt owing. Cross-sectional approachA statistical methodology applied to a set of firms at a particular point in time. Debt (Credit Insurance)Money, goods or services that someone is obligated to pay someone else in accordance with an expressed or implied agreement. Debt may or may not be SECured. Debt securitiesIOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and Debt SecurityA SECurity representing a debt relationship with an enterprise, including a government Demand line of creditA bank line of credit that enables a customer to borrow on a daily or on-demand basis. Derivative securityA financial SECurity, such as an option, or future, whose value is derived in part from the Disability Insurance (Credit Insurance)Group Insurance designed to cover monthly obligations due to a borrower being unable to work due to sickness or injury. Discount securitiesNon-interest-bearing money market instruments that are issued at a discount and Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. EurocreditsIntermediate-term loans of Eurocurrencies made by banking syndicates to corporate and Evergreen creditRevolving credit without maturity. Exchangeable SecuritySECurity that grants the SECurity holder the right to exchange the SECurity for the Exempt securitiesInstruments exempt from the registration requirements of the SECurities Act of 1933 or the Export Credit InsuranceThe granting of insurance to cover the commercial and political risks of selling in foreign markets. Federal agency securitiesSECurities issued by corporations and agencies created by the U.S. government, Federal credit agenciesAgencies of the federal government set up to supply credit to various classes of Federal Deposit Insurance Corporation (FDIC)A federal institution that insures bank deposits. Federal Employer Identification NumberA unique identification number issued Federal Financing BankA federal institution that lends to a wide array of federal credit agencies funds it Federal fundsNon-interest bearing deposits held in reserve for depository institutions at their district federal Federal funds marketThe market where banks can borrow or lend reserves, allowing banks temporarily Federal funds rateThis is the interest rate that banks with excess reserves at a federal Reserve district bank Federal Funds RateThe interest rate at which banks lend deposits at the federal Reserve to one another overnight. Federal Home Loan BanksThe 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 Reserve BanksThe twelve district banks in the federal Reserve System. Federal Reserve BoardBoard of Governors of the federal Reserve System. Federal Reserve SystemThe central bank of the U.S., established in 1913, and governed by the federal Federal Reserve SystemThe central banking Authority responsible for monetary policy in the United States. Federal Reserve (the Fed)The central bank in the United States, responsible for setting interest rates. 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 Five Cs of creditFive characteristics that are used to form a judgement about a customer's creditworthiness: Fixed-dollar securityA nonnegotiable debt SECurity that can be redeemed at some fixed price or according to Fixed-income securityA SECurity that pays a specified cash flow over a floating-rate securitySECurity paying dividends or interest that vary with short-term interest rates. Foreign tax creditHome country credit against domestic income tax for foreign taxes paid on foreign Formalized Line of CreditA contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year. Freddie Mac (Federal Home Loan Mortgage Corporation)A Congressionally chartered corporation that Full costThe cost of a product/service that includes an allocation of all the (production and Full-Cost MethodA method of accounting for petroleum exploration and development expenditures full costingsee absorption costing Full coupon bondA bond with a coupon equal to the going market rate, thereby, the bond is selling at par. Full Credit PeriodThe period of trade credit given by a supplier to its customer. Full EmploymentThe level of employment corresponding to the natural rate of unemployment. Full-Employment OutputThe level of output produced by the economy when operating at the natural rate of unemployment. Full faith-and-credit obligationsThe SECurity pledges for larger municipal bond issuers, such as states and Full-payout leaseSee: financial lease. Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. Full-service leaseAlso called rental lease. Lease in which the lessor promises to maintain and insure the Fully diluted earnings per sharesEarnings per share expressed as if all outstanding convertible SECurities Fully modified pass-throughsAgency pass-throughs that guarantee the timely payment of both interest and Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |