Secured Loans
Feasible target payout ratios
Payout ratios that are consistent with the level of excess funds available to make
cash dividend payments.
Federal agency securities
Securities issued by corporations and agencies created by the U.S. government,
such as the Federal Home Loan Bank Board and Ginnie Mae.
Federal credit agencies
Agencies of the federal government set up to supply credit to various classes of
institutions and individuals, e.g. S&Ls, small business firms, students, farmers,
and exporters.
Federal Deposit Insurance Corporation (FDIC)
A federal institution that insures bank deposits.
Federal Financing Bank
A federal institution that lends to a wide array of federal credit agencies funds it
obtains by borrowing from the U.S. Treasury.
Federal funds
Non-interest bearing deposits held in reserve for depository institutions at their
district Federal Reserve Bank. Also, excess reserves lent by banks to each other.
Federal funds market
The market where banks can borrow or lend reserves, allowing banks
temporarily short of their required reserves to borrow reserves from banks that
have excess reserves.
Federal funds rate
This is the interest rate that banks with excess reserves at a Federal Reserve
district bank charge other banks that need overnight loans. The Fed Funds rate,
as it is called, often points to the direction of U.S. interest rates. Mainly applies to
convertible securities. The most sensitive indicator of the direction of interest
rates, since it is set daily by the market, unlike the prime rate and the discount
rate.
