Financial Terms
Federal Reserve Board

Main Page

Alphabetical
Index

SEARCH


Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.

 


Main Page: inventory control, inventory, money, stock trading, credit, tax advisor, financial advisor, investment,

Definition of Federal Reserve Board

Federal Reserve Board Image 1

Federal Reserve Board

board of Governors of the federal reserve System.



Related Terms:

Edge corporations

Specialized banking institutions, authorized and chartered by the federal reserve board
in the U.S., which are allowed to engage in transactions that have a foreign or international character. They
are not subject to any restrictions on interstate banking. Foreign banks operating in the U.S. are permitted to
organize and own and Edge corporation.


Reserve ratios

Specified percentages of deposits, established by the federal reserve board, that banks must
keep in a non-interest-bearing account at one of the twelve federal reserve Banks.


Big Board

A nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000
common and preferred stocks are traded. Founded in 1792, the NYSE is the oldest exchange in the United
States, and the largest. It is located on Wall Street in New York City.


Excess reserves

Any excess of actual reserves above required reserves.


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 Reserve Board Image 2

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.


Federal Home Loan Banks

The institutions that regulate and lend to savings and loan associations. The
federal Home Loan Banks play a role analogous to that played by the federal reserve Banks vis-Ă -vis
member commercial banks.


Federal Reserve System

The central bank of the U.S., established in 1913, and governed by the federal
reserve board located in Washington, D.C. The system includes 12 federal reserve Banks and is authorized
to regulate monetary policy in the U.S. as well as to supervise federal reserve member banks, bank holding
companies, international operations of U.S.banks, and U.S.operations of foreign banks.


Federally related institutions

Arms of the federal government that are exempt from SEC registration and
whose securities are backed by the full faith and credit of the U.S. government (with the exception of the
Tennessee Valley Authority).


Freddie Mac (Federal Home Loan Mortgage Corporation)

A Congressionally chartered corporation that
purchases residential mortgages in the secondary market from S&Ls, banks, and mortgage bankers and
securitizes these mortgages for sale into the capital markets.


Free on board

Implies that distributive services like transport and handling performed on goods up to the
customs frontier of the economy from which the goods are classed as merchandise.


Federal Reserve Board Image 3

Free reserves

Excess reserves minus member bank borrowings at the Fed.


Official reserves

Holdings of gold and foreign currencies by official monetary institutions.


Required reserves

The dollar amounts based on reserve ratios that banks are required to keep on deposit at a federal reserve Bank.


Reserve

An accounting entry that properly reflects the contingent liabilities.


Reserve currency

A foreign currency held by a central bank or monetary authority for the purposes of
exchange intervention and the settlement of inter-governmental claims.


Reserve requirements

The percentage of different types of deposits that member banks are required to hold
on deposit at the Fed.


Cost Accounting Standards Board (CASB)

a body established by Congress in 1970 to promulgate cost accounting
standards for defense contractors and federal agencies; disbanded
in 1980 and reestablished in 1988; it previously issued
pronouncements still carry the weight of law for those
organizations within its jurisdiction


Federal Reserve (the Fed)

The central bank in the United States, responsible for setting interest rates.


Excess Reserves

reserves of commercial banks in excess of those they are legally required to hold.


Federal Funds Rate

The interest rate at which banks lend deposits at the federal reserve to one another overnight.


Federal Open Market Committee (FOMC)

Fed committee that makes decisions about open-market operations.


Federal Reserve Board Image 4

Federal Reserve Banks

The twelve district banks in the federal reserve System.


Federal Reserve System

The central banking authority responsible for monetary policy in the United States.


Foreign Exchange Reserves

A fund containing the central bank's holdings of foreign currency or claims thereon.


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.


International Reserves

See foreign exchange reserves.


Legal Reserve Requirement

See reserve requirement.


Required Reserves

reserves that the central bank requires commercial banks to hold.


Reserve Currency

A currency, frequently the U.S. dollar, that is used by other countries to denominate the assets they hold as international reserves.


Reserve Ratio

See reserve requirement.


Reserve Requirement

Fraction of total deposits that a commercial bank is required by the central bank to hold in the form of reserves.


Reserves

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.


Electronic Federal Tax Payment Systems (EFTPS)

An electronic funds transfer system used by businesses to remit taxes to the government.


Federal Employer Identification Number

A unique identification number issued
by the federal government used for payroll purposes to identify the company
when it deals with the Internal Revenue Service.


Federal Insurance Contributions Act of 1935 (FICA)

A federal Act authorizing the government to collect Social Security and Medicare payroll taxes.


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
pool of funds to be used for unemployment benefits.


Reserve Ratio

This calculation is used by states to determine the unemployment contribution rate to charge employers. The ongoing balance of a firm’s unclaimed
contributions from previous years is reduced by unemployment claims for the past year and then divided by the average annual payroll, resulting in a "reserve ratio".


Cookie Jar Reserves

An overly aggressive accrual of operating expenses and the creation of
liability accounts done in an effort to reduce future-year operating expenses.


Free-on-Board (FOB) Destination

A shipping arrangement agreed to between buyer and
seller where title to the goods sold passes when the goods in question reach their destination.
When goods are shipped FOB destination, revenue is properly recognized when the goods reach
their destination.


Free-on-Board (FOB) Shipping Point

A shipping arrangement agreed to between buyer and
seller where title to the goods sold passes when the goods in question are delivered to a common
carrier. When goods are shipped FOB shipping point, revenue is properly recognized when the
goods are delivered to the common carrier.


Public Oversight Board

An independent private-sector body that oversees the audit practices
of certified public accountants who work with SEC-regulated companies.


Material review board

A company committee typically comprising members representing
multiple departments, which determines the disposition of inventory
items that will not be used in the normal manufacturing or distribution process.


Reserved material

Material that has been reserved for a specific purpose.


Initial margin requirement

When buying securities on margin, the proportion of the total market value of
the securities that the investor must pay for in cash. The Security Exchange Act of 1934 gives the board of
governors of the federal reserve the responsibility to set initial margin requirements, but individual
brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by
the exchange.


Monetary policy

Actions taken by the board of Governors of the federal reserve System to influence the
money supply or interest rates.


 

 

 

 

 

 

Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.


Copyright© 2024 www.finance-lib.com