Fact-finding
Factor income
Bureau of Economic Analysis (BEA)
Definition: Labor and property earnings from current production. In national income, it is the incomes accruing to labor and property of U.S. residents, which include compensation of employees (received), proprietors’ income, rental income of persons, and corporate profits.
Factor market
Factors of production
Family
Economics: Principles & Practices
Definition: Two or more persons living together that are related by blood, marriage, or adoption
Definition: A family is a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family. Beginning with the 1980 Current Population Survey, unrelated subfamilies (referred to in the past as secondary families) are no longer included in the count of families, nor are the members of unrelated subfamilies included in the count of family members. The number of families is equal to the number of family households, however, the count of family members differs from the count of family household members because family household members include any non-relatives living in the household.
Family group
Definition: A family group is any two or more people (not necessarily including a householder) residing together, and related by birth, marriage, or adoption. A household may be composed of one such group, more than one, or none at all. The count of family groups includes family households, related subfamilies, and unrelated subfamilies.
Family household
Definition: A family household is a household maintained by a householder who is in a family (as defined above), and includes any unrelated people (unrelated subfamily members and/or secondary individuals) who may be residing there. The number of family households is equal to the number of families. The count of family household members differs from the count of family members, however, in that the family household members include all people living in the household, whereas family members include only the householder and his/her relatives. See the definition of family.
Related Term(s): Family
Fannie Mae
Federal Reserve Bank of Cleveland
Definition: Fannie Mae (the Federal National Mortgage Association) is one of the three federally-sponsored enterprises charged with providing funding and expanding access to the housing-finance market. In addition to purchasing loans directly from mortgage banks and other lenders, Fannie Mae also guarantees pools of mortgages against default, thereby making the secondary mortgage market more liquid.
Federal Advisory Council – FAC
Federal Reserve Bank of San Francisco
Definition: An advisory group consisting of one member, usually a banker, from each Federal Reserve District. Members are elected annually by the Reserve Bank boards of directors. Members meet with the Federal Reserve Board at least four times a year to make recommendations on business and financial issues relating to banking, but have no real power.
Federal Reserve Bank of Cleveland
Definition: This group consists of one member from each Federal Reserve District (usually a banker) elected annually by the Board of Directors of each of the 12 Federal Reserve Banks. They meet with the Board to discuss business and financial conditions and make advisory recommendations.
Federal Reserve Bank of Minneapolis
Definition: Advisory group made up of one representative (in most cases a banker) from each of the 12 Federal Reserve districts. Established by the Federal Reserve Act, the council meets periodically with the Board of Governors to discuss business and financial conditions and make recommendations.
SSI Annual Statistical Report, 2002
Definition: The basic benefit standards used in computing the amount of federal SSI payments. Benefit levels differ for individuals and couples living in households and for persons in Medicaid institutions. Individuals or couples living in their own household receive the full federal benefit. The federal benefit is reduced by one-third if an individual or couple is living in another person’s household and receiving support and maintenance there. The federal benefit rates are increased annually to reflect increases in the cost of living.
Federal Reserve Bank of Cleveland
Definition: When the government spends more than it collects in revenues during a given fiscal year, its budget incurs a deficit. Because the government must borrow money to pay the deficit, it acquires debt (and the interest on that debt), which must be repayed at some point. If deficits occur over successive years, as they have in the previous few decades, more money must be borrowed and the debt grows.
Economics: Principles & Practices
Definition: Total amount of money the federal government has borrowed from others
Office of Management and Budget
Definition: Debt Held by the Public—The cumulative amount of money the federal government has borrowed from the public and not repaid. See also debt held by government accounts and debt limit.
Citizen’s Guide to the Federal Budget
Definition: The gross Federal debt is divided into two categories: debt held by the public, and debt the Government owes itself. Another category is debt subject to legal limit. (1) ”Debt Held by the Public” is the total of all Federal deficits, minus surplus, over the years. This is the cumulative amount of money the Federal Government has borrowed from the public, through the sale of notes and bonds of varying sizes and time periods until maturity. (2) ”Debt the Government Owes Itself” is the total of all trust fund surpluses over the years, like the Social Security surplus, that the law says must be invested in Federal securities. (3) ”Debt Subject to Legal Limit” is roughly the same as gross Federal debt, is the maximum amount of Federal securities that may be legally outstanding at any time. When the limit is reached, the President and Congress must enact a law to increase it.
Federal Reserve Bank of San Francisco
Definition: An independent deposit insurance agency created by Congress in 1933 to maintain stability and public confidence in the nation’s banking system. The FDIC promotes safety and soundness of insured depository institutions and the U.S. financial system by identifying, monitoring, and addressing risks to the deposit insurance funds; minimizes disruptive effects from the failure of banks and savings associations; and ensures fairness in the sale of financial products and provision of financial services.
Federal Reserve Bank of Cleveland
Definition: An agency of the federal government that insures accounts at most commercial banks and mutual savings banks. The FDIC also has primary federal supervisory authority over insured state banks that are not members of the Federal Reserve System.
Federal Reserve Bank of Minneapolis
Definition: An independent deposit insurance agency created by Congress in 1933 to maintain stability and public confidence in the nation’s banking system. The FDIC promotes safety and soundness of insured depository institutions and the U.S. financial system by identifying, monitoring and addressing risks to the deposit insurance funds; minimizes disruptive effects from the failure of banks and savings associations; and ensures fairness in the sale of financial products and the provision of financial services.
Definition: Part of the budgeting and accounting structure of the federal government. Federal funds are all funds that make up the federal budget except those classified by law as trust funds. Federal funds include several types of funds, one of which is the general fund. See also general fund; compare with trust funds.
Federal Reserve Bank of Cleveland
Definition: Reserve balances that depository institutions lend each other, usually on an overnight basis. In addition, Federal funds include certain other kinds of borrowings by depository institutions from each other and from federal agencies.
Federal Reserve Bank of Minneapolis
Definition: Short-term transactions in immediately available funds between depository institutions and certain other institutions that maintain accounts with the Federal Reserve; usually not collateralized.
Federal Reserve Bank of San Francisco
Definition: Short-term transactions in immediately available funds between depository institutions and certain other institutions that maintain accounts with the Federal Reserve; usually not collateralized.
Related Term(s): General fund, Trust funds
Definition: The interest rate that financial institutions charge each other for overnight loans of their monetary reserves. A rise in the federal funds rate (compared with other short-term interest rates) suggests a tightening of monetary policy, whereas a fall suggests an easing. (FRB) See also monetary policy and short-term interest rate.
Related Term(s): Monetary policy, Short-term interest rate
Federal Reserve Bank of Cleveland
Definition: The interest rate at which banks borrow federal funds from each other, usually on an overnight basis. Banks use the money to make up for temporary shortfalls in reserve balances.
Federal Reserve Bank of Minneapolis
Definition: The federal funds rate is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. The rate may vary from depository institution to depository institution and from day to day.
Federal Reserve Bank of San Francisco
Definition: The agency of the federal government that supervises all federal savings and loan associations and federally insured state-chartered savings and loan associations. The FHLBB also operates the Federal Savings and Loan Insurance Corporation, which insures accounts at federal savings and loan associations and those state-chartered associations that apply and are accepted. In addition, the FHLBB directs the Federal Home Loan Bank System, which provides a flexible credit facility for member savings institutions to promote the availability of home financing. The FHL Banks also own the Federal Home Loan Mortgage Corporation, established in 1970 to promote secondary markets for mortgages.
Federal Reserve Bank of Cleveland
Definition: A broker’s demand upon a customer for cash, or securities needed to satisfy the required Regulation T down payment for a purchase or short sale of securities.
Definition: The group within the Federal Reserve System that determines the direction of monetary policy. The open market desk at the Federal Reserve Bank of New York implements that policy with open market operations (the purchase or sale of government securities), which influence short-term interest rates–especially the federal funds rate–and the growth of the money supply. The committee is composed of 12 members, including the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and a rotating group of four of the other 11 presidents of the regional Federal Reserve Banks. See also federal funds rate, Federal Reserve System, monetary policy, money supply, and short-term interest rate.
Related Term(s): Federal funds rate, Federal Reserve System, Monetary policy, Money supply, Short-term interest rate
Federal Reserve Bank of Cleveland
Definition: A 12-member committee consisting of the seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents. The president of the Federal Reserve Bank of New York is a permanent member while the other Federal Reserve presidents serve on a rotating basis. The Committee sets objectives for the growth of money and credit that are implemented through purchases and sales of U.S. government securities in the open market. The FOMC also establishes policy relating to System operations in the foreign exchange markets.
Federal Reserve Bank of Minneapolis
Definition: Twelve-member committee made up of the seven members of the Fed’s Board of Governors; the president of the Federal Reserve Bank of New York; and, on a rotating basis, the presidents of four other Reserve Banks. The FOMC meets eight times a year to set Federal Reserve guidelines regarding the purchase and sale of government securities in the open market as a means of influencing the volume of bank credit and money in the economy. It also establishes policy relating to System operations in the foreign exchange markets.
Federal Reserve Bank of Cleveland
Definition: One of the twelve operating arms of the Federal Reserve System, located throughout the nation, that together with their twenty-five Branches carry out various System functions.
Federal Reserve Bank of Minneapolis
Definition: One of the 12 operating arms of the Federal Reserve System, located throughout the nation, that together with their 25 branches carry out various System functions, including operating a nationwide payments system, distributing the nation’s currency and coin, supervising and regulating member banks and bank holding companies and serving as banker for the U.S. Treasury.
Federal Reserve Bank of San Francisco
Definition: One of the twelve operating arms of the Federal Reserve System, located throughout the nation, that together with their twenty-five Branches carry out various System functions, including operating a nationwide payments system, distributing the nation’s currency and coin, supervising and regulating member banks and bank holding companies, and serving as banker for the U.S. Treasury.
Federal Reserve Bank of Cleveland
Definition: Checkbook money that for a period of time appears on the books of both the payer and payee due to the lag in the collection process. Federal Reserve float often arises during the Federal Reserve’s check collection process. In order to promote an efficient payments mechanism with certainty as to the date funds become available, the Federal Reserve has employed the policy of crediting the reserve accounts of depository institutions depositing checks according to an availability schedule before the Federal Reserve is able to obtain payment from others.
Federal Reserve Bank of Minneapolis
Definition: Float is checkbook money that appears on the books of both the check writer (the payor) and the check receiver (the payee) while a check is being processed. Federal Reserve float is float present during the Federal Reserve’s check collection process. To promote efficiency in the payments system and provide certainty about the date that deposited funds will become available to the receiving depository institutions (and the payee), the Federal Reserve credits the reserve accounts of banks that deposit checks according to a fixed schedule. However, processing certain checks and collecting funds from the banks on which these checks are written may take more time than the schedule allows. Therefore, the accounts of some banks may be credited before the Federal Reserve is able to collect payment from other banks, resulting in Federal Reserve float.
Federal Reserve Bank of San Francisco
Definition: Checkbook money that, for a period of time, appears on the books of both the payor and payee due to the lag in the collection process. Federal Reserve float often arises during the Federal Reserve’s check collection process. In order to promote an efficient payments mechanism with certainty as to the date funds become available, the Federal Reserve has employed the policy of crediting the reserve accounts of depository institutions depositing checks (the payee) according to an availability schedule before the Federal Reserve is able to obtain payment from the payor.
Economics: Principles & Practices
Definition: Currency issued by the Fed that eventually replaced all other types of federal currency
Federal Reserve Bank of Minneapolis
Definition: Currency issued by the Federal Reserve. Nearly all of the nation’s circulating paper currency consists of Federal Reserve notes printed by the Bureau of Engraving and Printing and issued to the Federal Reserve Banks which put them into circulation through commercial banks and other depository institutions. Federal Reserve notes are obligations of the U.S. government.
Federal Reserve Bank of Cleveland
Definition: Nearly all of the nation’s circulating paper currency consists of Federal Reserve notes printed by the Bureau of Engraving and Printing and issued to the Federal Reserve Banks which put them into circulation through commercial banks and other depository institutions. Federal Reserve notes are obligations of the U.S. government.
Federal Reserve Bank of San Francisco
Definition: Nearly all of the nation’s circulating paper currency consists of Federal Reserve notes printed by the Bureau of Engraving and Printing and issued to the Federal Reserve Banks to put into circulation through commercial banks and other depository institutions. Federal Reserve notes are obligations of the U.S. government.
Economics: Principles & Practices
Definition: Privately owned, publicly controlled, central bank of the United States
Definition: The central bank of the United States. The Federal Reserve is responsible for conducting the nation’s monetary policy and overseeing credit conditions. See also central bank, monetary policy, and short-term interest rate.
Federal Reserve Bank of Cleveland
Definition: The central bank of the United States created by Congress, consisting of a seven-member Board of Governors in Washington, D.C., 12 regional Reserve Banks, and depository institutions that are subject to reserve requirements. All national banks are members and state chartered banks may elect to become members. State member banks are supervised by the Board of Governors and the Reserve Banks. Reserve requirements established by the Federal Reserve Board apply to nonmember depository institutions as well as member banks. Both classes of institutions have access to Federal Reserve discount borrowing privileges and Federal Reserve services on an equal basis.
Federal Reserve Bank of Cleveland
Definition: The Federal Reserve funds transfer system. Fedwire is used for transferring reserve account balances of depository institutions and government securities. Fedwire is also used for the settlement of other clearing systems, such as CHIPS.
Federal Reserve Bank of San Francisco
Definition: Electronic funds transfer network operated by the Federal Reserve. Fedwire is usually used to transfer large amounts of funds and U.S. government securities from one institution’s account at the Federal Reserve to another institution’s account. It is also used by the U.S. Department of the Treasury and other federal agencies to collect and disburse funds.
Federal Reserve Bank of Cleveland
Definition: Money that is not backed by gold or any other commodity. It has little or no intrinsic value as a commodity and it is relatively costless to produce, usually taking the form of tokens or pieces of paper. It is money by virtue of a legal declaration as such.
Economics: Principles & Practices
Definition: Money by government decree; has no alternative value or use as a commodity
Bureau of Economic Analysis (BEA)
Definition: The third estimate of gross domestic product (GDP) and its components for a quarter. It is released 85-90 days after the end of the quarter, and it is based on source data that are more detailed and comprehensive than the preliminary estimate. The final estimate is still subject to later revisions.
Related Term(s): Preliminary estimate
Bureau of Economic Analysis (BEA)
Definition: Final-demand components for goods and services, which consist of personal consumption expenditures (PCE); gross private fixed investment; change in private inventories; exports of goods and services; imports of goods and services, and government consumption expenditures and gross investment.
Related Term(s): Input-output (I-O) accounts
Related Term(s): Open-end lease
Bureau of Economic Analysis (BEA)
Definition: Record of transactions between U.S. residents and foreign residents resulting in changes in the level of international claims or liabilities, such as in deposits, ownership of portfolio investment securities, and direct investment.
Related Term(s): Balance of payments, Current account (international)
Financial asset
Financial asset
Bureau of Economic Analysis (BEA)
Definition: Deposits, stocks, bonds, notes, currencies, and other instruments that possess value and give rise to claims, liabilities, or equity investment. Financial assets include bank loans, direct investments, and official private holdings of debt and equity securities and other instruments. When the holder resides in a country that is different from the issuer of the instrument, it is included in the international investment position of both countries.
Bureau of Economic Analysis (BEA)
Definition: Deposits, stocks, bonds, notes, currencies, and other instruments that possess value and give rise to claims, liabilities, or equity investment. Financial assets include bank loans, direct investments, and official private holdings of debt and equity securities and other instruments. When the holder resides in a country that is different from the issuer of the instrument, it is included in the international investment position of both countries.
Related Term(s): Financial account (international), International investment position (IIP) of the United States
Federal Reserve Bank of San Francisco
Definition: A financial entity engaged in a broad range of banking-related activities, created by the Gramm-Leach-Bliley Act of 1999. These activities include: insurance underwriting, securities dealing and underwriting, financial and investment advisory services, merchant banking, issuing or selling securitized interests in bank-eligible assets, and generally engaging in any non-banking activity authorized by the Bank Holding Company Act. The Federal Reserve Board is responsible for supervising the financial condition and activities of financial holding companies. Similarly, any non-bank commercial company that is predominantly engaged in financial activities, earning 85% or more of its gross revenues from financial services, may choose to become a financial holding company. These companies are required to sell any non-financial (commercial) businesses within ten years.
Federal Reserve Bank of Cleveland
Definition: An institution that uses its funds chiefly to purchase financial assets (loans, securities) as opposed to tangible property. Financial institutions can be classified according to the nature of the principal claims they issue nondeposit intermediaries include, among others, life and property/casualty insurance companies and pension funds, whose claims are the policies they sell, or the promise to provide income after retirement; depository intermediaries obtain funds mainly by accepting deposits from the public. Although the major depository institutions historically have specialized in certain types of credit, the powers of nonbank depository institutions have been broadened in recent years. For example, NOW accounts, credit union share drafts, and other services similar to checking accounts may be offered by thrift institutions.
Federal Reserve Bank of Minneapolis
Definition: An institution that uses its funds chiefly to purchase financial assets (loans, securities) as opposed to tangible property. Financial institutions can be classified according to the nature of the principal claims they issue. See also depository institution.
Federal Reserve Bank of San Francisco
Definition: An institution that uses its funds chiefly to purchase financial assets (loans, securities) as opposed to tangible property. Financial institutions can be classified according to the nature of the principal claims they issue. See also depository institution.
Internal Revenue Service (IRS)
Definition: Spending and income records and items to keep for tax purposes, including paycheck stubs, statements of interest or dividends earned, and records of gifts, tips, and bonuses. Spending records include canceled checks, cash register receipts, credit card statements, and rent receipts.
Definition: A nonbudgetary account associated with a credit program that holds balances, receives credit subsidy payments from the program account, and includes all cash flows resulting from obligations or commitments made under the program since October 1, 1991. The transactions reflected in the financing account are considered a means of financing. See also credit subsidy, means of financing, and program account; compare with liquidating account.
Related Term(s): Credit subsidy, Liquidating account, Means of Financing, Program account
Federal Reserve Bank of Cleveland
Definition: Services performed by the Federal Reserve Banks for the U.S. government. These include maintaining deposit accounts for the Treasury Department, paying U.S. government checks drawn on the Treasury, and issuing and redeeming savings bonds and other government securities.
Federal Reserve Bank of Minneapolis
Definition: Services performed by the Federal Reserve Banks for the U.S. government. These include maintaining deposit accounts for the Treasury Department, paying U.S. government checks drawn on the Treasury, and issuing and redeeming savings bonds and other government securities.
Federal Reserve Bank of San Francisco
Definition: Services performed by the Federal Reserve Banks on behalf of the U.S. government. These include maintaining deposit accounts for the Treasury Department, paying U.S. government checks drawn on the Treasury, and issuing and redeeming savings bonds and other government securities.
Economics: Principles & Practices
Definition: Use of government spending and revenue collection measures to influence the economy
Economics: Principles & Practices
Definition: 12-month financial planning period that may not coincide with the calendar year; October 1 to September 30 for the federal government
Office of Management and Budget
Definition: The fiscal year is the federal government’s accounting period. It begins on October 1 and ends on September 30. For example, fiscal year 2003 begins on October 1, 2002 and ends on September 30, 2003.
Definition: A yearly accounting period. The federal government’s fiscal year begins October 1 and ends September 30. Fiscal years are designated by the calendar years in which they end–for example, fiscal year 2003 will begin October 1, 2002, and end September 30, 2003. The budget year is the fiscal year for which the budget is being considered. In relation to a session of Congress, it is the fiscal year that starts on October 1 of the calendar year in which that session of Congress begins. An out-year is a fiscal year following the budget year. The current year is the fiscal year in progress.
Bureau of Economic Analysis (BEA)
Definition: Produced assets that are used repeatedly, or continuously, in processes of production for an extended period of time. They consist of equipment and software and structures (including, by convention, owner-occupied housing), but exclude consumer durables.
Federal Reserve Bank of Cleveland
Definition: A system in which the values of different currencies are fixed relative to one another. This system existed in some form until 1973. See also Bretton Woods and floating exchange rates.
Related Term(s): Bretton Woods system, Floating exchange rates
Bureau of Economic Analysis (BEA)
Definition: Consists of purchases of residential and nonresidential structures and of equipment and software by private businesses, by nonprofit institutions, and by governments in the United States. (Owner-occupied housing is treated like a business in the NIPAs.)
Related Term(s): Nonresidential fixed investment, Residential fixed investment
Federal Reserve Bank of Cleveland
Definition: A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal.
Economics: Principles & Practices
Definition: Proportional tax on individual income after a specified threshold has been reached
Related Term(s): Progressive tax, Proportional tax
Federal Reserve Bank of Cleveland
Definition: A system in which the values of different currencies are allowed to fluctuate against each other. Higher inflation in one country will cause the value of that country’s currency to fall relative to other currencies. See also fixed exchange rates.
Related Term(s): Fixed exchange rates
Economics: Principals and Practices
Definition: Government-issued coupons that can be exchanged for food
Bureau of Economic Analysis (BEA)
Definition: A foreign business enterprise in which there is U.S. direct investment–that is, in which a U.S. person, or entity, owns or controls 10 percent or more of the voting securities of an incorporated foreign business enterprise or an equivalent interest in an unincorporated foreign business enterprise.
Related Term(s): Foreign parent, Majority-owned foreign affiliate (MOFA), U.S. affiliate
Bureau of Economic Analysis (BEA)
Definition: or control, directly or indirectly, by one foreign person, or entity, of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise.
Related Term(s): Direct investment, Foreign parent, U.S. affiliate
Federal Reserve Bank of Minneapolis
Definition: The foreign exchange trading desk at the New York Federal Reserve Bank. The desk undertakes operations in the exchange markets for the account of the Federal Open Market Committee, and as agent for the U.S. Treasury and for foreign central banks.
Federal Reserve Bank of San Francisco
Definition: The foreign exchange trading desk at the New York Federal Reserve Bank. The desk undertakes operations in the exchange markets for the account of the Federal Open Market Committee, and acts as agent for the U.S. Treasury and for foreign central banks.
Federal Reserve Bank of San Francisco
Definition: Purchase or sale of the currencies of other nations by a central bank for the purpose of influencing foreign exchange rates or maintaining orderly foreign exchange markets. Also called foreign currency operations.
Related Term(s): Foreign currency operations
Bureau of Economic Analysis (BEA)
Definition: The first person, or entity, outside the United States in a U.S. affiliate’s ownership chain that has a direct investment interest in the affiliate.
Related Term(s): Foreign affiliate, Foreign parent group, U.S. affiliate, U.S. parent, Ultimate beneficial owner (UBO)
Bureau of Economic Analysis (BEA)
Definition: Consists of the foreign parent and the ultimate beneficial owner (UBO) of a U.S. affiliate and other foreign companies affiliated with the foreign parent and ultimate beneficial owner. More specifically, the foreign parent group consists of (1) the foreign parent, (2) any foreign person, or entity, proceeding up the foreign parent’s ownership chain, that owns or controls more than 50 percent of the person below it, up to and including the ultimate beneficial owner, and (3) any foreign person, or entity, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.
Bureau of Economic Analysis (BEA)
Definition: Individuals, governments, business enterprises, trusts, associations, and nonprofit organizations that fulfill two criteria: (1) They have their center of economic interest outside the United States, and (2) they reside, or expect to reside, outside the United States for one year or more. Included in this definition are U.S. individuals living abroad for one year or more who are not employed by the U.S. government, foreigners residing in the United States for less than one year, and foreign affiliates of U.S. companies. In addition, foreign nationals employed in the United States by their home governments, foreign students enrolled at U.S. educational institutions, and international institutions located in the United States are also considered foreign residents.
Federal Reserve Bank of Cleveland
Definition: A type of foreign exchange transaction where by a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, businesses protect themselves against a decrease in the value of a currency they plan to sell at a future date.
Federal Reserve Bank of Minneapolis
Definition: A type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, businesses protect themselves against a decrease in the value of a currency they plan to sell at a future date.
Federal Reserve Bank of San Francisco
Definition: A type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, businesses protect themselves against a decrease in the value of a currency they plan to sell at a future date.
Definition: The provision of budget authority that becomes available for obligation in the last quarter of a fiscal year and remains available during the following fiscal year. That form of funding typically finances ongoing education grant programs. See also budget authority and fiscal year; compare with advance appropriation and obligation delay.
Related Term(s): Advance appropriation, Budget authority, Fiscal year, Obligation delay
Federal Reserve Bank of Cleveland
Definition: A variant of the Taylor rules in which the funds rate responds to expected movements in future variables (for example, expected inflation).
Related Term(s): Taylor rules
Federal Reserve Bank of San Francisco
Definition: The Communications network of the Federal Reserve which interconnects Federal Reserve Bank offices, the Board of Governors, depository institutions, and the Treasury. It is used for Fedwire transfers and transfers of U.S. securities as well as for transfer of Federal Reserve administrative, supervisory, and monetary policy information.
Federal Reserve Bank of Cleveland
Definition: Freddie Mac (the Federal National Home Loan Mortgage Corporation) is another federally-sponsored secondary-market agency. Like Fannie Mae, Freddie Mac both purchases loans directly from the primary mortgage market and guarantees loans that are sold on the secondary market.
Economics: Principles & Practices
Definition: Unemployment caused by workers changing jobs or waiting to go to new ones
Federal Reserve Bank of San Francisco
Definition: Short-term joblessness associated with mobility. A person who leaves a job to find something better is considered frictionally unemployed. This type of unemployment characterizes workers subject to seasonal work (e.g., construction, agricultural, winter recreational workers, etc.).
Federal Reserve Bank of Minneapolis
Definition: Federal legislation that, among other things, specifies the primary objectives of U.S. economic policy—maximum employment, stable prices, and moderate long-term interest rates.
Related Term(s): Humphrey-Hawkins Act
Office of Management and Budget
Definition: Civilian employment in the Executive Branch is measured on the basis of full-time equivalents. One FTE is equal to one work year or 2,080 non-overtime hours. For example, one full-time employee counts as one FTE, and two half-time employees also count as one FTE.
Related Term(s): Federal funds rate (funds rate)
Economics: Principles & Practices
Definition: Contracts to buy or sell commodities or financial assets at a specific future date, using a price agreed upon today
Federal Reserve Bank of Cleveland
Definition: Contracts that require delivery of a commodity of specified quality and quantity, at a specified price, on a specified future date. Commodity futures are traded on a commodity exchange and are used for both speculation and hedging.