/Users/andrea/_magisterarbeit/korpus/clean/trainkorpus/29/file_212.html NN ----------------------------------------- : Home NP What's NP New NP Careers NNS Glossary NN FAQ NP E NP Mail NP Us NP Site NN Map NN U NP . SENT S NP . SENT Monetary NP Policy NP . SENT An DT Introduction NN Economic NP Ed NP Newsletter NN Visit NN FedVille NP Glossary NN A NP B NP C NP D NP E NP F NP G NP H NP I NP J NP K NP L NP M NP N NP O NP P NN Q NP R NP S NP T NN U NP V NN W NP X NP Y NP Z NP A DT absolute JJ advantage NN A DT country NN has VHZ an DT absolute JJ advantage NN if IN its PP$ output NN per IN unit NN of IN input NN of IN all DT goods NNS and CC services NNS produced VVN is VBZ higher JJR than IN that DT of IN another DT country NN . SENT academic JJ consultants NNS An DT advisory JJ group NN initiated VVN by IN the DT Board NP in IN the DT 1960 CD s NN to TO provide VV a DT forum NN for IN the DT exchange NN of IN views NNS between IN the DT Federal NP Reserve NP Board NP and CC members NNS of IN the DT academic JJ community NN in IN economics NNS and CC banking NN . SENT accretion NN of IN discount NN A DT straight JJ line NN accumulation NN of IN capital NN gains NNS on IN discount NN bonds NNS in IN anticipation NN of IN being VBG paid VVN par NN at IN maturity NN . SENT accrual NN method NN of IN accounting NN See VV cash NN method NN of IN accounting NN . SENT aggregate JJ Any DT total JJ e NN . SENT g NN . SENT , , the DT gross JJ national JJ product NN . SENT the DT sum NN of IN monthly JJ sales NNS . SENT agreement NN corporation NN Corporation NP chartered VVD by IN a DT state NN to TO engage VV in IN international JJ banking NN . SENT so RB named VVN because IN the DT corporation NN enters VVZ into IN an DT agreement NN with IN the DT Board NP of IN Governors NP to TO limit VV its PP$ activities NNS to TO those DT permitted VVN an DT Edge NP Act NP corporation NN . SENT amortization NN The DT process NN of IN fully RB paying VVG off RP indebtedness NN by IN installments NNS of IN principal NN and CC earned VVD interest NN over IN a DT definite JJ time NN . SENT annual JJ percentage NN rate NN APR NN The DT cost NN of IN credit NN on IN a DT yearly JJ basis NN expressed VVN as IN a DT percentage NN . SENT appraisal NN fee NN The DT charge NN for IN estimating VVG the DT value NN of IN property NN offered VVN as IN security NN . SENT appreciation NN See VV currency NN appreciation NN . SENT auction VV A DT method NN of IN determining VVG price NN and CC interest NN . SENT automated JJ clearinghouse NN ACH NP Electronic NP clearing NN and CC settlement NN system NN for IN exchanging VVG electronic JJ transactions NNS among IN participating VVG depository JJ institutions NNS . SENT such JJ electronic JJ transactions NNS are VBP substitutes NNS for IN paper NN checks NNS and CC are VBP typically RB used VVN to TO make VV recurring VVG payments NNS such JJ as IN payroll NN or CC loan NN payments NNS . SENT The DT Federal NP Reserve NP Banks NNS operate VVP an DT automated JJ clearinghouse NN , , as RB do VVP some DT private JJ sector NN firms NNS . SENT automated JJ teller NN machines NNS ATM NN Computer NP controlled VVN terminals NNS located VVN on IN the DT premises NNS of IN financial JJ institutions NNS or CC elsewhere RB , , through IN which WDT customers NNS may MD make VV deposits NNS , , withdrawals NNS , , or CC other JJ transactions NNS as IN they PP would MD through IN a DT bank NN teller NN . SENT Other JJ terms NNS sometimes RB used VVN to TO describe VV such JJ terminals NNS are VBP customer NN bank NN communications NNS terminal JJ CBC NP and CC remote JJ service NN unit NN RSU NP . SENT Groups NNS of IN banks NNS sometimes RB share NN ATM NN networks NNS located VVN throughout IN a DT region NN of IN the DT country NN that WDT may MD include VV portions NNS of IN several JJ states NNS . SENT automatic JJ transfer NN service NN account NN ATS NN A DT depositor's NNS savings NNS account VVP from IN which WDT funds NNS may MD be VB transferred VVN automatically RB to TO the DT same JJ depositor's NNS checking VVG account NN to TO cover VV a DT check NN written VVN or CC to TO maintain VV a DT minimum JJ balance NN . SENT B SYM balance NN of IN payments NNS An DT accounting NN statement NN of IN the DT money NN value NN of IN international JJ transactions NNS between IN one CD nation NN and CC the DT rest NN of IN the DT world NN over IN a DT specific JJ time NN period NN . SENT The DT statement NN shows VVZ the DT sum NN of IN transactions NNS of IN individuals NNS , , businesses NNS , , and CC government NN agencies NNS located VVN in IN one CD nation NN , , against IN those DT of IN all DT other JJ nations NNS . SENT balance NN of IN trade NN That DT part NN of IN a DT nation's JJ balance NN of IN payments NNS dealing VVG with IN imports NNS and CC exports NNS , , that WDT is VBZ trade NN in IN goods NNS and CC services NNS , , over IN a DT given VVN period NN . SENT If IN exports NNS of IN goods NNS exceed VVP imports NNS , , the DT trade NN balance NN is VBZ said VVN to TO be VB favorable JJ . SENT if IN imports NNS exceed VVP exports NNS , , the DT trade NN balance NN if IN said VVD to TO be VB unfavorable JJ . SENT balloon NN payment NN A DT large JJ extra JJ payment NN that WDT may MD be VB charged VVN at IN the DT end NN of IN a DT loan NN or CC lease NN . SENT Bank NP for IN International NP Settlements NP BIS RB The DT BIS RB , , located VVN in IN Basle NP , , Switzerland NP , , was VBD established VVN in IN 1930 CD to TO administer VV the DT post NN World NP War NP I NP reparations NNS agreements NNS . SENT Since IN the DT 1960 CD s PP , , the DT BIS RB has VHZ evolved VVN into IN an DT important JJ international JJ monetary JJ institution NN , , and CC has VHZ provided VVN a DT forum NN in IN which WDT central JJ bankers NNS meet VV and CC consult VV on IN a DT monthly JJ basis NN . 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SENT The DT Board NP of IN Governors NP is VBZ responsible JJ for IN regulating VVG and CC supervising VVG bank NN holding NN companies NNS , , even RB if IN the DT bank NN owned VVN by IN the DT holding NN company NN is VBZ under IN the DT primary JJ supervision NN of IN a DT different JJ federal JJ agency NN the DT Comptroller NN of IN the DT Currency NN or CC the DT Federal NP Deposit NP Insurance NP Corporation NP . SENT bank NN note VVP A DT term NN used VVN synonymously RB with IN paper NN money NN or CC currency NN issued VVN by IN a DT bank NN . SENT Notes NNS are VBP , , in IN effect NN , , a DT promise NN to TO pay VV the DT bearer NN on IN demand NN the DT amount NN stated VVN on IN the DT face NN of IN the DT note NN . SENT Today NN , , only RB the DT Federal NP Reserve NP Banks NPS are VBP authorized VVN to TO issue VV bank NN notes NNS , , i NP . SENT e SYM . SENT Federal NP Reserve NP notes VVZ , , in IN the DT United NP States NPS . SENT bank NN regulation NN The DT formulation NN and CC issuance NN by IN authorized JJ agencies NNS of IN specific JJ rules NNS or CC regulations NNS , , under IN governing VVG law NN , , for IN the DT conduct NN and CC structure NN of IN banking NN . SENT bank NN run NN bank NN panic NN A DT series NN of IN unexpected JJ cash NN withdrawals NNS caused VVN by IN a DT sudden JJ decline NN in IN depositor NN confidence NN or CC fear NN that IN the DT bank NN will MD be VB closed VVN by IN the DT chartering VVG agency NN , , i NP . SENT e SYM . SENT many JJ depositors NNS withdraw VV cash NN almost RB simultaneously RB . SENT Since IN the DT cash NN reserve NN a DT bank NN keeps VVZ on IN hand NN is VBZ only RB a DT small JJ fraction NN of IN its PP$ deposits NNS , , a DT large JJ number NN of IN withdrawals NNS in IN a DT short JJ period NN of IN time NN can MD deplete VV available JJ cash NN and CC force VV the DT bank NN to TO close VV and CC possibly RB go VV out RP of IN business NN . SENT bank NN supervision NN Oversight NP of IN individual JJ banks NNS to TO ensure VV that IN they PP are VBP operated VVN prudently RB and CC in IN accordance NN with IN applicable JJ statutes NNS and CC regulations NNS . SENT bankers NNS acceptance NN Bankers NNS acceptances NNS are VBP negotiable JJ time NN drafts NNS , , or CC bills NNS of IN exchange NN , , that WDT have VHP been VBN accepted VVN by IN a DT bank NN that WDT , , by IN accepting VVG , , assumes VVZ the DT obligation NN to TO pay VV the DT holder NN of IN the DT draft NN the DT face NN amount NN of IN the DT instrument NN on IN the DT maturity NN date NN specified VVN . SENT They PP are VBP used VVN primarily RB to TO finance VV the DT export NN , , import NN , , shipment NN , , or CC storage NN of IN goods NNS . SENT bankwire NN An DT electronic JJ communications NNS network NN owned VVN by IN an DT association NN of IN banks NNS and CC used VVN to TO transfer VV messages NNS between IN subscribing VVG banks NNS . SENT Bankwire NP also RB offers VVZ a DT clearing NN service NN called VVN Cashwire NP that WDT includes VVZ a DT settlement NN facility NN . SENT bilateralism NN An DT international JJ policy NN having VHG as IN its PP$ objective NN the DT achievement NN of IN particular JJ balances NNS of IN trade NN between IN two CD nations NNS by IN means NNS of IN discriminatory JJ tariffs NNS , , exchange NN , , or CC other JJ controls NNS . SENT The DT initiative NN is VBZ usually RB taken VVN by IN the DT country NN having VHG an DT unfavorable JJ balance NN of IN trade NN . SENT Extensive JJ bilateralism NN results NNS in IN a DT shift NN of IN international JJ trade NN away RB from IN channels NNS that WDT would MD result VV from IN the DT principle NN of IN comparative JJ advantage NN . SENT See VV also RB multilateralism NN . SENT bill NN A DT short JJ term NN direct JJ obligation NN of IN the DT U NP . SENT S NP . SENT Treasury NP 13 CD , , 26 CD , , or CC 52 CD weeks NNS maturity NN . SENT See VV also RB note NN and CC bond NN . SENT Board NP of IN Governors NP Central NP governmental JJ agency NN of IN the DT Federal NP Reserve NP System NP , , located VVN in IN Washington NP , , DC NP , , and CC composed VVN of IN seven CD members NNS who WP are VBP appointed VVN by IN the DT President NP and CC confirmed VVD by IN the DT Senate NP . SENT The DT Board NP is VBZ responsible JJ for IN domestic JJ and CC international JJ economic JJ analysis NN with IN other JJ components NNS of IN the DT System NP . SENT for IN the DT conduct NN of IN monetary JJ policy NN . SENT for IN supervision NN and CC regulation NN of IN certain JJ banking NN organizations NNS . SENT for IN operation NN of IN much JJ of IN the DT nation's JJ payments NNS system NN . SENT and CC for IN administration NN of IN most JJS of IN the DT nation's JJ laws NNS that WDT protect VVP consumers NNS in IN credit NN transactions NNS . SENT bond NN A DT long JJ term NN obligation NN of IN the DT U NP . SENT S NP . SENT Treasury NN more JJR than IN 10 CD years NNS maturity NN . SENT See VV also RB bill NN and CC note NN . SENT book NN entry NN securities NNS Securities NNS that WDT are VBP recorded VVN in IN electronic JJ records NNS , , called VVD book NN entries NNS , , rather RB than IN as IN paper NN certificates NNS . SENT Ownership NN of IN U NP . SENT S NP . SENT government NN book NN entry NN securities NNS is VBZ transferred VVN over IN Fedwire NP . SENT broker NN dealer NN Any DT person NN , , other JJ than IN a DT bank NN , , engaged VVN in IN the DT business NN of IN buying VVG or CC selling VVG securities NNS on IN her PP or CC his PP$ own JJ behalf NN for IN others NNS . 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SENT buydown NN A DT lump NN sum NN payment NN made VVD to TO the DT creditor NN by IN the DT borrower NN or CC by IN a DT third JJ party NN to TO reduce VV the DT amount NN of IN some DT or CC all DT of IN the DT consumer's JJ periodic JJ payments NNS to TO repay VV the DT indebtness NN . SENT C NP California NP Economic NP Development NP Lending NN Initiative NP CEDLI NP This DT is VBZ a DT statewide JJ community NN development NN corporation NN that WDT provides VVZ financing NN to TO serve VV a DT range NN of IN community NN economics NNS development NN needs VVZ , , including VVG small JJ businesses NNS , , non JJ profit NN lenders NNS , , and CC community NN real JJ estate NN projects NNS . SENT capacity NN utilization NN rate NN The DT percentage NN of IN the DT economy's JJ total JJ plant NN and CC equipment NN that WDT is VBZ currently RB in IN production NN . SENT Usually RB a DT decrease NN in IN this DT percentage NN signals VVZ an DT economic JJ slowdown NN , , while IN an DT increase NN signals VVZ economic JJ expansion NN . SENT capital NN market NN The DT market NN in IN which WDT corporate JJ equity NN and CC longer JJR term NN debt NN securities NNS those DT maturing VVG in IN more JJR than IN one CD year NN are VBP issued VVN and CC traded VVN . SENT capital NN market NN rates NNS See VV long JJ term NN interest NN rates NNS . SENT Cash NP Management NP Bills NNS CMB NP Very JJ short JJ maturity NN bills NNS that IN the DT Treasury NP sells VVZ on IN an DT irregular JJ basis NN to TO bridge VV low JJ points NNS in IN the DT Treasury's NP cash NN balance NN . SENT cash NN method NN of IN accounting VVG A DT system NN , , used VVN especially RB in IN computing VVG income NN tax NN , , in IN which WDT income NN is VBZ not RB credited VVN until IN it PP is VBZ actually RB or CC constructively RB received VVD and CC expenses NNS are VBP not RB charged VVN until IN they PP have VHP been VBN paid VVN . SENT to TO be VB distinguished VVN from IN the DT accrual NN method NN , , in IN which WDT income NN is VBZ credited VVN when WRB the DT legal JJ right NN to TO the DT income NN occurs VVZ and CC expenses NNS are VBP charged VVN when WRB the DT legal JJ liability NN becomes VVZ enforceable JJ . SENT cease VV and CC desist VV order VV An DT order NN issued VVN after IN notice NN and CC opportunity NN for IN hearing NN , , requiring VVG a DT depository JJ institution NN , , a DT holding NN company NN , , or CC a DT depository JJ institution NN official NN to TO terminate VV unlawful JJ , , unsafe JJ , , or CC unsound JJ banking NN practices NNS . SENT Cease VV and CC desist VV orders NNS are VBP issued VVN by IN the DT appropriate JJ federal JJ regulatory JJ agencies NNS under IN the DT Financial NP Institutions NP Supervisory JJ Act NP and CC can MD be VB enforced VVN directly RB by IN the DT courts NNS . SENT central JJ bank NN The DT principal JJ monetary JJ authority NN of IN a DT nation NN , , a DT central JJ bank NN performs VVZ several JJ key JJ functions NNS , , including VVG issuing VVG currency NN and CC regulating VVG the DT supply NN of IN credit NN in IN the DT economy NN . SENT The DT Federal NP Reserve NP is VBZ the DT central JJ bank NN of IN the DT United NP States NPS . SENT central JJ bank NN intervention NN The DT buying VVG or CC selling VVG of IN currency NN , , foreign JJ or CC domestic JJ , , by IN central JJ banks NNS , , in IN order NN to TO influence VV market NN conditions NNS or CC exchange NN rate NN movements NNS . SENT certificate NN of IN deposit NN CD NN A DT form NN of IN time NN deposit NN at IN a DT bank NN or CC savings NN institution NN which WDT cannot NN be VB withdrawn VVN before IN a DT specified JJ maturity NN date NN without IN being VBG subject JJ to TO an DT interest NN penalty NN for IN early JJ withdrawal NN . SENT Small JJ denomination NN CDs NNS are VBP often RB purchased VVN by IN individuals NNS . SENT Large JJ CDs NNS of IN 100 CD , , 000 CD or CC more JJR are VBP often RB in IN negotiable JJ form NN , , meaning VVG they PP can MD be VB sold VVN or CC transferred VVN among IN holders NNS before IN maturity NN . SENT check VV clearing VVG The DT movement NN of IN checks NNS from IN the DT banks NNS or CC other JJ depository JJ institutions NNS where WRB they PP are VBP deposited VVN back RB to TO those DT on IN which WDT they PP are VBP written VVN , , and CC funds NNS movement NN in IN the DT opposite JJ direction NN . SENT This DT process NN results NNS in IN credits NNS to TO accounts NNS at IN the DT institutions NNS of IN deposit NN and CC corresponding JJ debits NNS to TO accounts NNS at IN the DT paying VVG institutions NNS . SENT The DT Federal NP Reserve NP participates VVZ in IN check NN clearing NN through IN its PP$ nationwide JJ facilities NNS , , though IN many JJ checks NNS are VBP cleared VVN by IN private JJ sector NN arrangement NN . SENT clearinghouse NN An DT institution NN where WRB mutual JJ claims NNS are VBP settled VVN between IN accounts NNS of IN member NN depository NN institutions NNS . SENT Clearinghouses NNS among IN banks NNS have VHP traditionally RB been VBN organized VVN for IN check NN clearing NN purposes NNS , , but CC more RBR recently RB have VHP cleared VVN other JJ types NNS of IN settlements NNS , , including VVG electronic JJ fund NN transfers NNS . SENT Clearinghouse NN Interbank NN Payments NNS System NP CHIPS NNS An DT automated JJ clearing NN system NN used VVN primarily RB for IN international JJ payments NNS . SENT This DT system NN is VBZ owned VVN and CC operated VVN by IN the DT New NP York NP Clearinghouse NN banks NNS and CC engages VVZ Fedwire NP for IN settlement NN . SENT closed JJ end NN credit NN An DT agreement NN in IN which WDT advanced JJ credit NN , , plus CC any DT finance NN charges NNS , , are VBP expected VVN to TO be VB repaid VVN in IN full JJ over IN a DT definite JJ time NN . SENT Most RBS real JJ estate NN and CC automobile NN loans NNS are VBP closed VVN end NN agreements NNS . SENT collateral NN Property NN that WDT is VBZ offered VVN to TO secure VV a DT loan NN or CC other JJ credit NN and CC that WDT becomes VVZ subject JJ to TO seizure NN on IN default NN . SENT Also RB called VVN security NN . SENT commercial JJ bank NN Bank NN that WDT offers VVZ a DT broad JJ range NN of IN deposit NN accounts NNS , , including VVG checking NN , , savings NNS , , and CC time NN deposits NNS , , and CC extends VVZ loans NNS to TO individuals NNS and CC businesses NNS . SENT Commercial JJ banks NNS can MD be VB contrasted VVN with IN investment NN banking NN firms NNS , , such JJ as IN brokerage NN firms NNS , , which WDT generally RB are VBP involved VVN in IN arranging VVG for IN the DT sale NN of IN corporate JJ or CC municipal JJ securities NNS . SENT commodity NN prices NNS An DT index NN of IN commodities NNS such JJ as IN oil NN and CC steel NN traded VVN in IN worldwide JJ markets NNS . SENT Community NP Reinvestment NP Act NP CRA NP Enacted VVD by IN Congress NP in IN 1977 CD , , the DT CRA NP encourages VVZ banks NNS to TO help VV meet VV the DT credit NN needs VVZ of IN their PP$ communities NNS for IN housing NN and CC other JJ purposes NNS , , particularly RB in IN neighborhoods NNS with IN low JJ or CC moderate JJ incomes NNS , , while IN maintaining VVG safe JJ and CC sound JJ operations NNS . SENT Community NP Reinvestment NP Act NP Statement NN A DT description NN available JJ for IN public JJ inspection NN at IN each DT bank NN office NN indicating VVG , , on IN a DT map NN , , the DT communities NNS served VVN by IN that DT office NN and CC the DT types NNS of IN credit NN the DT bank NN is VBZ prepared VVN to TO extend VV within IN the DT communities NNS served VVD . SENT competitive JJ bidders NNS One CD of IN two CD categories NNS of IN bidders NNS on IN Treasury NP securities NNS . SENT competitive JJ and CC noncompetitive JJ . SENT Competitive JJ bidders NNS are VBP usually RB financial JJ institutions NNS . SENT Comptroller NN of IN the DT Currency NP See NP Office NP of IN the DT Comptroller NN of IN the DT Currency NN . SENT consortium NN A DT grouping NN of IN corporations NNS to TO fulfill VV a DT combined JJ objective NN or CC project NN that WDT usually RB requires VVZ interbusiness NN cooperation NN and CC sharing VVG of IN the DT goods NNS . SENT Consumer NP Advisory NP Council NP CAC NP A DT statutory JJ body NN established VVN by IN Congress NP in IN 1976 CD . SENT The DT Council NP , , with IN 30 CD members NNS who WP represent VVP a DT broad JJ range NN of IN consumer NN and CC creditor NN interests NNS , , advises VVZ the DT Federal NP Reserve NP Board NP on IN the DT exercise NN of IN its PP$ responsibilities NNS under IN the DT Consumer NP Credit NP Protection NP Act NP and CC on IN other JJ matters NNS on IN which WDT the DT Federal NP Reserve NP Board NP seeks VVZ its PP$ advice NN . SENT consumer NN price NN index NN CPI NP A DT measurement NN of IN the DT cost NN of IN living VVG determined VVN by IN the DT Bureau NP of IN Labor NP Statistics NPS . SENT contractionary JJ fiscal JJ policy NN A DT policy NN to TO increase VV governmental JJ spending NN and CC or CC a DT reduction NN in IN taxes NNS . SENT See VV also RB fiscal JJ policy NN . SENT contractionary JJ monetary JJ policy NN A DT policy NN to TO restrict VV the DT growth NN of IN money NN and CC credit NN in IN the DT economy NN . SENT See VV also RB monetary JJ policy NN . SENT contemporaneous JJ reserve NN accounting VVG An DT accounting NN method NN that WDT allows VVZ member NN banks NNS of IN the DT Federal NP Reserve NP a DT one CD day NN lag NN when WRB calculating VVG their PP$ required JJ reserves NNS and CC reserves NNS held VVN as IN vault NN cash NN . SENT Except IN for IN the DT one CD day NN lag NN , , assets NNS and CC liabilities NNS used VVN in IN calculating VVG reserves NNS and CC required JJ reserves NNS are VBP those DT of IN the DT same JJ week NN . SENT correspondent NN bank NN A DT bank NN that WDT accepts VVZ deposits NNS of IN and CC performs VVZ banking NN services NNS for IN other JJ depository JJ institutions NNS . SENT cosigner NN A DT term NN referring VVG to TO a DT person NN , , other JJ than IN the DT principle NN borrower NN , , who WP signs VVZ for IN a DT loan NN . SENT The DT cosigner NN s PP assumes VVZ equal JJ liability NN for IN the DT loan NN . SENT credit NN The DT promise NN to TO pay VV in IN the DT future NN in IN order NN to TO buy VV or CC borrow VV in IN the DT present NN . SENT The DT right NN to TO defer VV payment NN of IN debt NN . SENT credit NN card NN Any DT card NN , , plate NN , , or CC coupon NN book NN that WDT may MD be VB used VVN repeatedly RB to TO borrow VV money NN or CC buy VV goods NNS and CC services NNS on IN credit NN . SENT credit NN scoring VVG system NN A DT statistical JJ system NN used VVN to TO determine VV whether IN or CC not RB to TO grant VV credit NN by IN assigning VVG numerical JJ scores NNS to TO various JJ characteristics NNS related VVN to TO creditworthiness NN . SENT credit NN union NN Financial NP cooperative JJ organization NN of IN individuals NNS who WP have VHP a DT common JJ bond NN , , such JJ as IN a DT place NN of IN employment NN , , residence NN , , or CC membership NN in IN a DT labor NN union NN . SENT Credit NN unions NNS accept VVP deposits NNS from IN members NNS , , pay VV interest NN in IN the DT form NN of IN dividends NNS on IN the DT deposits NNS out RP of IN earnings NNS , , and CC use VV their PP$ funds NNS mainly RB to TO provide VV consumer NN installment NN loans NNS to TO members NNS . SENT credit NN history NN A DT record NN of IN how WRB a DT person NN has VHZ borrowed VVN and CC repaid VVN debt NN . SENT creditworthiness NN A DT creditor's JJ measure NN of IN a DT consumer's NNS past JJ and CC future JJ ability NN and CC willingness NN to TO repay VV debts NNS . SENT currency NN appreciation NN An DT increase NN in IN the DT value NN of IN one CD currency NN relative JJ to TO another DT currency NN . SENT Appreciation NN occurs VVZ when WRB , , because IN of IN a DT change NN in IN exchange NN rates NNS , , a DT unit NN of IN one CD currency NN buys VVZ more JJR units NNS of IN another DT currency NN . SENT currency NN depreciation NN A DT decline NN in IN the DT value NN of IN one CD currency NN relative JJ to TO another DT currency NN . SENT Depreciation NN occurs VVZ when WRB , , because IN of IN a DT change NN in IN exchange NN rates NNS , , a DT unit NN of IN one CD currency NN buys VVZ fewer JJR units NNS of IN another DT currency NN . SENT currency NN devaluation NN A DT deliberate JJ downward JJ adjustment NN in IN the DT official JJ exchange NN rate NN established VVN , , or CC pegged VVD , , by IN a DT government NN against IN a DT specified JJ standard NN , , such JJ as IN another DT currency NN or CC gold NN . SENT currency NN revaluation NN A DT deliberate JJ upward JJ adjustment NN in IN the DT official JJ exchange NN rate NN established VVN , , or CC pegged VVD , , by IN a DT government NN against IN a DT specified JJ standard NN , , such JJ as IN another DT currency NN or CC gold NN . SENT current JJ account NN balance NN The DT difference NN between IN the DT nation's JJ total JJ exports NNS of IN goods NNS , , services NNS , , and CC transfers NNS and CC its PP$ total JJ imports NNS of IN them PP . SENT Current JJ account NN balance NN calculations NNS exclude VVP transactions NNS in IN financial JJ assets NNS and CC liabilities NNS . SENT cyclical JJ unemployment NN Unemployment NN caused VVN by IN a DT low JJ level NN of IN aggregate JJ demand NN associated VVN with IN recession NN in IN the DT business NN cycle NN . SENT D SYM data NN limitations NNS In IN stabilization NN policy NN , , refers VVZ to TO two CD scenarios NNS . SENT 1 CD quantitative JJ factual JJ information NN or CC data NN that WDT is VBZ only RB available JJ after IN the DT event NN e NN . SENT g NN . SENT , , unemployment NN figures NNS for IN last JJ month NN . SENT 2 LS the DT raw JJ information NN that WDT is VBZ adjusted VVN for IN seasonal JJ variations NNS or CC changes NNS in IN prices NNS . SENT therefore RB , , data NNS may MD not RB accurately RB measure VV the DT activity NN . SENT day NN trade NN Also RB known VVN as IN a DT daylight NN trade NN . SENT The DT purchase NN and CC sale NN or CC the DT short JJ sale NN and CC cover VV of IN the DT same JJ security NN in IN a DT margin NN account NN on IN the DT same JJ day NN . SENT debit NN card NN A DT card NN that WDT resembles VVZ a DT credit NN card NN but CC which WDT debits VVZ a DT transaction NN account NN checking VVG account NN with IN the DT transfers NNS occurring VVG contemporaneously RB with IN the DT customer's JJ purchases NNS . SENT A DT debit NN card NN may MD be VB machine NN readable JJ , , allowing VVG for IN the DT activation NN of IN an DT automated JJ teller NN machine NN or CC other JJ automated JJ payments NNS equipment NN . SENT default NN Failure NN to TO meet VV the DT terms NNS of IN a DT credit NN agreement NN . SENT deficit NN The DT amount NN each DT year NN by IN which WDT government NN spending NN is VBZ greater JJR than IN government NN income NN . SENT demand NN deposit NN A DT deposit NN that WDT may MD be VB withdrawn VVN at IN any DT time NN without IN prior RB written VVN notice NN to TO the DT depository JJ institution NN . SENT A DT checking NN account NN is VBZ the DT most RBS common JJ form NN of IN demand NN deposit NN . SENT deposit NN ceiling NN rates NNS of IN interest NN Maximum JJ interest NN rates NNS that WDT can MD be VB paid VVN on IN savings NNS and CC time NN deposits NNS at IN federally RB insured VVN commercial JJ banks NNS , , mutual JJ savings NNS banks NNS , , savings NNS and CC loan NN associations NNS , , and CC credit NN unions NNS . SENT Ceilings NNS on IN credit NN union NN deposits NNS are VBP established VVN by IN the DT Depository JJ Institutions NP Deregulation NN Committee NP DIDC NP . SENT By IN law NN , , deposit NN interest NN rate NN ceilings NNS were VBD phased VVN out RP over IN a DT six CD year NN period NN , , ending VVG in IN 1986 CD under IN the DT oversight NN of IN the DT DIDC NP . SENT depository JJ institution NN A DT financial JJ institution NN that WDT obtains VVZ its PP$ funds NNS mainly RB through IN deposits NNS from IN the DT public NN . SENT This DT includes VVZ commercial JJ banks NNS , , savings NNS and CC loan NN associations NNS , , savings NNS banks NNS , , and CC credit NN unions NNS . SENT Although IN historically RB they PP have VHP specialized VVN in IN certain JJ types NNS of IN credit NN , , the DT powers NNS of IN nonbank NP depository NN institutions NNS have VHP been VBN broadened VVN in IN recent JJ years NNS . SENT For IN example NN , , NOW RB accounts NNS , , credit NN union NN share NN drafts NNS , , and CC other JJ services NNS similar JJ to TO checking NN accounts NNS may MD be VB offered VVN by IN thrift NN institutions NNS . SENT Depository JJ Institutions NPS Deregulation NN Committee NP DIDC NP The DT Committee NP responsible JJ for IN the DT orderly JJ phase NN out IN over IN a DT six CD year NN period NN of IN interest NN rate NN ceilings NNS on IN time NN and CC savings NN accounts NNS at IN depository JJ institutions NNS . SENT Voting NN members NNS of IN the DT DIDC NP are VBP the DT Secretary NP of IN the DT Treasury NP and CC the DT chairmen NNS of IN the DT Federal NP Reserve NP Board NP , , Federal NP Deposit NP Insurance NP Corporation NP , , Federal NP Home NP Loan NP Bank NP Board NP , , and CC National NP Credit NP Union NP Administration NP Board NP . SENT The DT Comptroller NN of IN the DT Currency NN serves VVZ as IN a DT non JJ voting NN member NN . SENT depreciation NN See VV currency NN depreciation NN . SENT direct JJ deposit NN A DT method NN of IN payment NN which WDT electronically RB credits VVZ your PP$ checking NN or CC savings NNS account VVP . SENT dirty JJ float VVP A DT type NN of IN floating JJ exchange NN rate NN that WDT is VBZ not RB completely RB freely RB floating JJ because IN central JJ banks NNS intervene VV from IN time NN to TO time NN to TO alter VV the DT rate NN from IN its PP$ free JJ market NN level NN . SENT It PP is VBZ still RB a DT floating JJ rate NN because IN it PP has VHZ not RB been VBN pegged VVN at IN a DT predetermined VVN par NN value NN . SENT discount NN payment NN The DT difference NN between IN the DT face NN value NN and CC the DT price NN paid VVN for IN a DT security NN . SENT discount NN rate NN Interest NN rate NN at IN which WDT an DT eligible JJ depository NN institution NN may MD borrow VV funds NNS , , typically RB for IN a DT short JJ period NN , , directly RB from IN a DT Federal NP Reserve NP Bank NP . SENT The DT law NN requires VVZ that IN the DT board NN of IN directors NNS of IN each DT Reserve NP Bank NP establish VV the DT discount NN rate NN every DT fourteen NN days NNS subject JJ to TO the DT approval NN of IN the DT Board NP of IN Governors NP . SENT discount NN window NN Figurative JJ expression NN referring VVG to TO the DT Federal NP Reserve's NP facility NN for IN extending VVG credit NN directly RB to TO eligible JJ depository JJ institutions NNS those DT with IN transaction NN accounts NNS or CC nonpersonal JJ time NN deposits NNS . SENT durable JJ merchandise NN Goods NP that WDT have VHP a DT relatively RB lengthy JJ life NN television NN sets NNS , , radios NNS , , etc FW . SENT . SENT E SYM economic JJ growth NN An DT increase NN in IN the DT nation's JJ capacity NN to TO produce VV goods NNS and CC services NNS . SENT economic JJ shocks NNS Events NNS that IN impact NN the DT economy NN , , come VVN from IN outside IN it PP , , and CC are VBP unexpected JJ and CC unpredictable JJ e NN . SENT g NN . SENT , , Hurricane NP Andrew NP in IN 1991 CD , , the DT rise NN in IN oil NN prices NNS by IN OPEC NP . SENT Edge NP Act NP corporation NN Corporation NP chartered VVD by IN the DT Federal NP Reserve NP to TO engage VV in IN international JJ banking NN . SENT The DT Board NP of IN Governors NP acts VVZ on IN applications NNS to TO establish VV Edge NP Act NP corporations NNS and CC also RB examines VVZ the DT corporations NNS and CC their PP$ subsidiaries NNS . SENT Named VVN after IN Senator NP Walter NP Edge NP of IN New NP Jersey NP , , who WP sponsored VVD the DT original JJ legislation NN to TO permit VV formation NN of IN such JJ organizations NNS . SENT See VV also RB agreement NN corporation NN . SENT electronic JJ funds NNS transfer VV EFT RB Transfer VV of IN funds NNS electronically RB rather RB than IN by IN check NN or CC cash NN . SENT The DT Federal NP Reserve's NP Fedwire NP and CC automated JJ clearinghouse NN services NNS are VBP EFT RB systems NNS . SENT Electronic NP Fund NP Transfer VV Systems NP EFTS NNS A DT variety NN of IN systems NNS and CC technologies NNS for IN transferring VVG funds NNS money NN electronically RB rather RB than IN by IN check NN . SENT This DT includes VVZ Fedwire NP , , automated JJ clearinghouses NNS ACHs NNS , , and CC other JJ automated JJ systems NNS . SENT employment NN rate NN The DT percentage NN of IN the DT labor NN force NN that WDT is VBZ employed VVN . SENT The DT employment NN rate NN is VBZ one CD of IN the DT economic JJ indicators NNS that IN economists NNS examine VVP to TO help VV understand VV the DT state NN of IN the DT economy NN . SENT See VV also RB unemployment NN rate NN . SENT equilibrium NN real JJ interest NN rate NN The DT rate NN that WDT would MD be VB consistent JJ with IN the DT full JJ employment NN of IN labor NN and CC industrial JJ capacity NN , , and CC with IN real JJ GDP NP being NN at IN its PP$ long RB run VVN potential JJ level NN . SENT This DT rate NN is VBZ needed VVN as IN a DT benchmark NN to TO judge VV whether IN a DT given VVN real JJ interest NN rate NN is VBZ expansionary JJ or CC contractionary JJ . SENT Eurodollars NNS Deposits NNS denominated VVN in IN U NP . SENT S NP . SENT dollars NNS at IN banks NNS and CC other JJ financial JJ institutions NNS outside IN the DT United NP States NPS . SENT Although IN this DT name NN originated VVN because IN of IN the DT large JJ amounts NNS of IN such JJ deposits NNS held VVN at IN banks NNS in IN Western NP Europe NP , , similar JJ deposits NNS in IN other JJ parts NNS of IN the DT world NN are VBP also RB called VVN Eurodollars NNS . SENT excess JJ reserves NNS Amount NN of IN reserves NNS held VVN by IN an DT institution NN in IN excess NN of IN its PP$ reserve NN requirement NN and CC required JJ clearing NN balance NN . SENT Also RB see VV reserves NNS . SENT exchange NN rate NN The DT price NN of IN a DT country's JJ currency NN in IN terms NNS of IN another DT country's JJ currency NN . SENT Executive NP Committee NP A DT decision NN making VVG body NN of IN the DT FRBSF NP comprised VVN of IN a DT number NN of IN the DT Bank's NP senior JJ officers NNS , , the DT Committee NP and CC its PP$ six CD satellite NN committees NNS were VBD established VVN in IN 1995 CD to TO replace VV the DT smaller JJR , , more RBR centralized JJ Management NP Committee NP . SENT The DT revised VVN committee NN structure NN was VBD intended VVN to TO decentralize VV decision NN making NN and CC promote VV increased JJ information NN sharing NN and CC teambuilding NN Districtwide NN . SENT exempted VVN security NN A DT security NN that WDT is VBZ exempted VVN from IN most JJS provisions NNS of IN the DT securities NNS laws NNS , , including VVG the DT margin NN rules NNS . SENT Such JJ securities NNS include VVP U NP . SENT S NP . SENT government NN and CC agency NN securities NNS and CC municipal JJ securities NNS designated VVN by IN the DT SEC NP . SENT expansionary JJ fiscal JJ policy NN A DT policy NN to TO decrease VV governmental JJ expenditures NNS and CC or CC to TO increase VV taxes NNS . SENT See VV also RB fiscal JJ policy NN . SENT expansionary JJ monetary JJ policy NN A DT policy NN of IN the DT Federal NP Reserve NP System NP that WDT is VBZ designed VVN to TO expand VV the DT growth NN of IN money NN and CC credit NN in IN the DT economy NN . SENT See VV also RB monetary JJ policy NN . SENT expected VVN rate NN of IN inflation NN The DT public's JJ expectations NNS for IN inflation NN . SENT These DT expectations NNS determine VVP how WRB large JJ an DT effect NN a DT given VVN policy NN action NN by IN the DT Fed NP will MD have VH on IN economic JJ activity NN . SENT F SYM Federal NP Advisory NP Council NP FAC NP An DT advisory JJ group NN consisting VVG of IN one CD member NN , , usually RB a DT banker NN , , from IN each DT Federal NP Reserve NP District NP . SENT Members NNS are VBP elected VVN annually RB by IN the DT Reserve NP Bank NP boards NNS of IN directors NNS . SENT Members NNS meet VVP with IN the DT Federal NP Reserve NP Board NP at IN least JJS four CD times NNS a DT year NN to TO make VV recommendations NNS on IN business NN and CC financial JJ issues NNS relating VVG to TO banking NN , , but CC have VH no DT real JJ power NN . SENT Federal NP Deposit NP Insurance NP Corporation NP FDIC NP An DT independent JJ deposit NN insurance NN agency NN created VVN by IN Congress NP in IN 1933 CD to TO maintain VV stability NN and CC public JJ confidence NN in IN the DT nation's JJ banking NN system NN . SENT The DT FDIC NP promotes VVZ safety NN and CC soundness NN of IN insured JJ depository JJ institutions NNS and CC the DT U NP . SENT S NP . SENT financial JJ system NN by IN identifying VVG , , monitoring VVG , , and CC addressing VVG risks NNS to TO the DT deposit NN insurance NN funds NNS . SENT minimizes VVZ disruptive JJ effects NNS from IN the DT failure NN of IN banks NNS and CC savings NNS associations NNS . SENT and CC ensures VVZ fairness NN in IN the DT sale NN of IN financial JJ products NNS and CC provision NN of IN financial JJ services NNS . SENT federal JJ funds NNS Short JJ term NN transactions NNS in IN immediately RB available JJ funds NNS between IN depository JJ institutions NNS and CC certain JJ other JJ institutions NNS that WDT maintain VVP accounts NNS with IN the DT Federal NP Reserve NP . SENT usually RB not RB collateralized JJ . SENT federal JJ funds NNS rate NN funds NNS rate NN The DT interest NN rate NN at IN which WDT banks NNS borrow VVP surplus NN reserves NNS and CC other JJ immediately RB available JJ funds NNS . SENT The DT federal JJ funds NNS rate NN is VBZ the DT shortest JJS short JJ term NN interest NN rate NN , , with IN maturities NNS on IN federal JJ funds NNS concentrated VVN in IN overnight JJ or CC one CD day NN transactions NNS . SENT Federal NP Home NP Loan NP Bank NP Board NP FHLBB NP The DT agency NN of IN the DT federal JJ government NN that WDT supervises VVZ all DT federal JJ savings NNS and CC loan NN associations NNS and CC federally RB insured VVN state NN chartered JJ savings NNS and CC loan NN associations NNS . SENT The DT FHLBB NP also RB operates VVZ the DT Federal NP Savings NP and CC Loan NP Insurance NP Corporation NP , , which WDT insures VVZ accounts NNS at IN federal JJ savings NNS and CC loan NN associations NNS and CC those DT state NN chartered VVD associations NNS that WDT apply VVP and CC are VBP accepted VVN . SENT In IN addition NN , , the DT FHLBB NP directs VVZ the DT Federal NP Home NP Loan NP Bank NP System NP , , which WDT provides VVZ a DT flexible JJ credit NN facility NN for IN member NN savings NNS institutions NNS to TO promote VV the DT availability NN of IN home NN financing NN . SENT The DT FHL NP Banks NPS also RB own VVP the DT Federal NP Home NP Loan NP Mortgage NP Corporation NP , , established VVN in IN 1970 CD to TO promote VV secondary JJ markets NNS for IN mortgages NNS . SENT federal JJ margin NN call VVP A DT broker's JJ demand NN upon IN a DT customer NN for IN cash NN or CC securities NNS needed VVN to TO satisfy VV the DT required JJ Regulation NN T NN down IN payment NN for IN a DT purchase NN or CC short JJ sale NN of IN securities NNS . SENT Federal NP Open NP Market NP Committee NP FOMC NP Twelve NP member NN committee NN made VVD up RP of IN the DT seven CD members NNS of IN the DT Board NP of IN Governors NP . SENT the DT president NN of IN the DT Federal NP Reserve NP Bank NP of IN New NP York NP . SENT and CC , , on IN a DT rotating VVG basis NN , , the DT presidents NNS of IN four CD other JJ Reserve NP Banks NNS . SENT The DT FOMC NP meets VVZ eight CD times NNS a DT year NN to TO set VV Federal NP Reserve NP guidelines NNS regarding VVG the DT purchase NN and CC sale NN of IN government NN securities NNS in IN the DT open JJ market NN as IN a DT means NN of IN influencing VVG the DT volume NN of IN bank NN credit NN and CC money NN in IN the DT economy NN . SENT It PP also RB establishes VVZ policy NN relating VVG to TO System NP operations NNS in IN the DT foreign JJ exchange NN rates NNS . SENT Federal NP Reserve NP Act NP of IN 1913 CD Federal NP legislation NN that WDT established VVD the DT Federal NP Reserve NP System NP . SENT Federal NP Reserve NP Bank NP FRB NP One CD of IN the DT twelve NN operating VVG arms NNS of IN the DT Federal NP Reserve NP System NP , , located VVN throughout IN the DT nation NN , , that WDT together RB with IN their PP$ twenty CD five CD Branches NNS carry VVP out IN various JJ System NP functions NNS , , including VVG operating VVG a DT nationwide JJ payments NNS system NN , , distributing VVG the DT nation's JJ currency NN and CC coin NN , , supervising VVG and CC regulating VVG member NN banks NNS and CC bank NN holding NN companies NNS , , and CC serving VVG as IN banker NN for IN the DT U NP . SENT S NP . SENT Treasury NP . SENT Federal NP Reserve NP District NP Reserve NP District NP or CC District NP One CD of IN the DT twelve NN geographic JJ regions NNS served VVN by IN a DT Federal NP Reserve NP Bank NP . SENT Federal NP Reserve NP float NN Checkbook NN money NN that WDT , , for IN a DT period NN of IN time NN , , appears VVZ on IN the DT books NNS of IN both CC the DT payor NN and CC payee NN due JJ to TO the DT lag NN in IN the DT collection NN process NN . SENT Federal NP Reserve NP float NN often RB arises VVZ during IN the DT Federal NP Reserve's NP check NN collection NN process NN . SENT In IN order NN to TO promote VV an DT efficient JJ payments NNS mechanism NN with IN certainty NN as RB to TO the DT date NN funds NNS become VVP available JJ , , the DT Federal NP Reserve NP has VHZ employed VVN the DT policy NN of IN crediting VVG the DT reserve NN accounts NNS of IN depository JJ institutions NNS depositing VVG checks NNS the DT payee NN according VVG to TO an DT availability NN schedule NN before IN the DT Federal NP Reserve NP is VBZ able JJ to TO obtain VV payment NN from IN the DT payor NN . SENT Federal NP Reserve NP notes VVZ Nearly RB all RB of IN the DT nation's NNS circulating VVG paper NN currency NN consists VVZ of IN Federal NP Reserve NP notes NNS printed VVN by IN the DT Bureau NP of IN Engraving VVG and CC Printing NP and CC issued VVD to TO the DT Federal NP Reserve NP Banks NPS to TO put VV into IN circulation NN through IN commercial JJ banks NNS and CC other JJ depository JJ institutions NNS . SENT Federal NP Reserve NP notes NNS are VBP obligations NNS of IN the DT U NP . SENT S NP . SENT government NN . SENT Federal NP Reserve NP System NP The DT central JJ bank NN of IN the DT United NP States NPS , , created VVN by IN Congress NP and CC made VVD up RP of IN a DT seven CD member NN Board NP of IN Governors NP in IN Washington NP , , DC NP , , twelve NN regional JJ Federal NP Reserve NP Banks NPS , , and CC their PP$ twenty CD five CD Branches NNS . SENT Fedwire NP Electronic NP funds NNS transfer NN network NN operated VVN by IN the DT Federal NP Reserve NP . SENT Fedwire NP is VBZ usually RB used VVN to TO transfer VV large JJ amounts NNS of IN funds NNS and CC U NP . SENT S NP . SENT government NN securities NNS from IN one CD institution's NNS account VVP at IN the DT Federal NP Reserve NP to TO another DT institution's NNS account VVP . SENT It PP is VBZ also RB used VVN by IN the DT U NP . SENT S NP . SENT Department NP of IN the DT Treasury NP and CC other JJ federal JJ agencies NNS to TO collect VV and CC disburse VV funds NNS . SENT fiat NN money NN Money NN that WDT has VHZ little RB or CC no DT intrinsic JJ value NN as IN a DT commodity NN . SENT it PP is VBZ costless JJ to TO produce VV , , usually RB taking VVG the DT form NN of IN tokens NNS or CC pieces NNS of IN paper NN , , and CC is VBZ not RB redeemable JJ for IN any DT commodity NN . SENT finance NN charge NN The DT total JJ dollar NN amount NN paid VVN to TO obtain VV credit NN . SENT finance NN lease NN See VV open JJ end NN lease NN . SENT financial JJ institution NN An DT institution NN that WDT uses VVZ its PP$ funds NNS chiefly RB to TO purchase VV financial JJ assets NNS loans NNS , , securities NNS as RB opposed VVN to TO tangible JJ property NN . SENT Financial JJ institutions NNS can MD be VB classified VVN according VVG to TO the DT nature NN of IN the DT principal NN claims VVZ they PP issue NN . SENT See VV also RB depository JJ institution NN . SENT financial JJ instrument NN Any DT written JJ instrument NN having VHG monetary JJ value NN or CC evidencing VVG a DT monetary JJ transaction NN . SENT fiscal JJ agency NN services NNS Services NP performed VVD by IN the DT Federal NP Reserve NP Banks NPS on IN behalf NN of IN the DT U NP . SENT S NP . SENT government NN . SENT These DT include VVP maintaining VVG deposit NN accounts NNS for IN the DT Treasury NP Department NP , , paying VVG U NP . SENT S NP . SENT government NN checks NNS drawn VVN on IN the DT Treasury NP , , and CC issuing VVG and CC redeeming VVG savings NNS bonds NNS and CC other JJ government NN securities NNS . SENT fiscal JJ policy NN The DT federal JJ government's NN decisions NNS about IN the DT amount NN of IN money NN it PP spends VVZ and CC collects VVZ in IN taxes NNS to TO achieve VV a DT full JJ employment NN and CC non JJ inflationary JJ economy NN . SENT See VV also RB contractionary JJ fiscal JJ policy NN and CC expansional JJ fiscal JJ policy NN . SENT fixed JJ exchange NN rate NN system NN Exchange NP rates NNS between IN currencies NNS that WDT are VBP set VVN at IN predetermined VVN levels NNS and CC don't JJ move NN in IN response NN to TO changes NNS in IN supply NN and CC demand NN . SENT fixed JJ rate NN A DT traditional JJ approach NN to TO determining VVG the DT finance NN charge NN payable JJ on IN an DT extension NN of IN credit NN . SENT A DT predetermined VVN and CC certain JJ rate NN of IN interest NN is VBZ applied VVN to TO the DT principal NN . SENT See VV also RB variable JJ rate NN . SENT floating JJ exchange NN rate NN system NN The DT flexible JJ exchange NN rate NN system NN in IN which WDT the DT exchange NN rate NN is VBZ determined VVN by IN the DT market NN forces NNS of IN supply NN and CC demand NN without IN intervention NN . SENT foreign JJ currency NN operations NNS Purchase NN or CC sale NN of IN the DT currencies NNS of IN other JJ nations NNS by IN a DT central JJ bank NN for IN the DT purpose NN of IN influencing VVG foreign JJ exchange NN rates NNS or CC maintaining VVG orderly JJ foreign JJ exchange NN markets NNS . SENT Also RB called VVN foreign JJ exchange NN market NN intervention NN . SENT foreign JJ exchange NN desk NN The DT foreign JJ exchange NN trading NN desk NN at IN the DT New NP York NP Federal NP Reserve NP Bank NP . SENT The DT desk NN undertakes VVZ operations NNS in IN the DT exchange NN markets NNS for IN the DT account NN of IN the DT Federal NP Open NP Market NP Committee NP , , and CC acts NNS as IN agent NN for IN the DT U NP . SENT S NP . SENT Treasury NP and CC for IN foreign JJ central JJ banks NNS . SENT foreign JJ exchange NN rate NN Price NN of IN the DT currency NN of IN one CD nation NN in IN terms NNS of IN the DT currency NN of IN another DT nation NN . SENT forward RB exchange VV A DT type NN of IN foreign JJ exchange NN transaction NN whereby WRB a DT contract NN is VBZ made VVN to TO exchange VV one CD currency NN for IN another DT at IN a DT fixed JJ date NN in IN the DT future NN at IN a DT specified JJ exchange NN rate NN . SENT By IN buying VVG or CC selling VVG forward JJ exchange NN , , businesses NNS protect VVP themselves PP against IN a DT decrease NN in IN the DT value NN of IN a DT currency NN they PP plan VVP to TO sell VV at IN a DT future JJ date NN . SENT FRBSF NP Federal NP Reserve NP Bank NP of IN San NP Francisco NP . SENT FRCS NP 80 CD The NP Communications NPS network NN of IN the DT Federal NP Reserve NP which WDT interconnects VVZ Federal NP Reserve NP Bank NP offices NNS , , the DT Board NP of IN Governors NP , , depository NN institutions NNS , , and CC the DT Treasury NP . SENT It PP is VBZ used VVN for IN Fedwire NP transfers NNS and CC transfers NNS of IN U NP . SENT S NP . SENT securities NNS as IN well RB as RB for IN transfer NN of IN Federal NP Reserve NP administrative JJ , , supervisory JJ , , and CC monetary JJ policy NN information NN . SENT frictional JJ unemployment NN Short JJ term NN joblessness NN associated VVN with IN mobility NN . SENT A DT person NN who WP leaves VVZ a DT job NN to TO find VV something NN better JJR is VBZ considered VVN frictionally RB unemployed JJ . SENT This DT type NN of IN unemployment NN characterizes VVZ workers NNS subject JJ to TO seasonal JJ work NN e NN . SENT g NN . SENT , , construction NN , , agricultural JJ , , winter NN recreational JJ workers NNS , , etc FW . SENT . SENT Full JJ Employment NN and CC Balanced JJ Growth NP Act NP of IN 1978 CD Humphrey NP Hawkins NP Act NP Federal NP legislation NN that WDT , , among IN other JJ things NNS , , specifies VVZ the DT primary JJ objectives NNS of IN U NP . SENT S NP . SENT economic JJ policy NN maximum NN employment NN , , stable JJ prices NNS , , and CC moderate JJ long JJ term NN interest NN rates NNS . SENT funds NNS rate NN See VV federal JJ funds NNS rate NN . SENT futures NNS Contracts NNS that WDT require VVP delivery NN of IN a DT commodity NN of IN specified JJ quality NN and CC quantity NN , , at IN a DT specified JJ price NN , , on IN a DT specified JJ future JJ date NN . SENT Commodity NN futures NNS are VBP traded VVN on IN a DT commodity NN exchange NN and CC are VBP used VVN for IN both DT speculation NN and CC hedging NN . SENT G NP gold NN exchange NN standard NN A DT variant JJ form NN of IN the DT gold JJ standard NN under IN which WDT a DT country NN pegged VVD the DT value NN of IN its PP$ currency NN to TO the DT value NN of IN the DT currency NN of IN a DT major JJ country NN , , e NN . SENT g NN . SENT sterling NN or CC dollars NNS , , which WDT was VBD itself PP on IN a DT gold JJ standard NN . SENT The DT international JJ monetary JJ regime NN in IN force NN between IN 1958 CD and CC 1970 CD is VBZ frequently RB described VVN as IN a DT gold JJ exchange NN standard NN system NN because IN of IN the DT wide JJ use NN of IN the DT dollar NN , , itself PP pegged VVD to TO gold NN , , as IN a DT reserve NN currency NN and CC as IN an DT accepted VVN medium NN of IN exchange NN internationally RB . SENT gold JJ standard NN A DT monetary JJ system NN in IN which WDT currencies NNS are VBP defined VVN in IN terms NNS of IN a DT given VVN weight NN of IN gold NN . SENT government NN securities NNS Securities NNS issued VVN by IN the DT U NP . SENT S NP . SENT Treasury NP or CC federal JJ agencies NNS . SENT graduated VVN payment NN Repayment NN terms NNS calling VVG for IN gradual JJ increases NNS in IN the DT payments NNS on IN a DT closed JJ end NN obligation NN . SENT A DT graduated VVN payment NN loan NN usually RB involves VVZ negative JJ amortization NN . SENT grandfathered VVN activities NNS Nonbank NP activities NNS , , some DT of IN which WDT would MD normally RB not RB be VB permissible JJ for IN bank NN holding NN companies NNS and CC foreign JJ banks NNS in IN the DT United NP States NPS , , but CC which WDT were VBD acquired VVN or CC engaged VVN in IN before IN a DT particular JJ date NN . SENT Such JJ activities NNS may MD be VB continued VVN under IN the DT grandfather NN clauses NNS of IN the DT Bank NP Holding NP Company NP and CC International NP Banking NP Acts VVZ . SENT gross JJ domestic JJ product NN GDP NP The DT total JJ value NN of IN a DT nation's JJ output NN , , income NN , , or CC expenditure NN produced VVN within IN a DT nation's JJ physical JJ borders NNS . SENT gross JJ national JJ product NN GNP NN A DT country's JJ total JJ output NN of IN goods NNS and CC services NNS from IN all DT forms NNS of IN economic JJ activity NN measured VVN at IN market NN prices NNS for IN a DT calendar NN year NN . SENT H NP Humphrey NP Hawkins NP Act NP Informal JJ name NN for IN the DT Full JJ Employment NN and CC Balanced JJ Growth NP Act NP of IN 1978 CD , , from IN the DT names NNS of IN the DT act's JJ original JJ sponsors NNS . SENT See VV Full JJ Employment NN and CC Balanced JJ Growth NP Act NP of IN 1978 CD . SENT I NN impact NN lag VVP The DT time NN it PP takes VVZ for IN the DT full JJ impact NN of IN the DT policy NN to TO be VB felt VVN . SENT See VV also RB time NN lag NN , , recognition NN lag NN , , and CC implementation NN lag NN . SENT implementation NN lag VVP The DT time NN it PP takes VVZ for IN policymakers NNS to TO act VV once IN they PP recognize VVP an DT economic JJ condition NN requiring VVG action NN . SENT See VV also RB time NN lag NN , , impact NN lag NN , , and CC recognition NN lag NN . SENT inflation NN A DT rate NN of IN increase NN in IN the DT general JJ price NN level NN of IN all DT goods NNS and CC services NNS . SENT This DT should MD not RB be VB confused VVN with IN increases NNS in IN the DT prices NNS of IN specific JJ goods NNS relative JJ to TO the DT prices NNS of IN other JJ goods NNS . SENT inflationary JJ expectations NNS The DT rate NN of IN increase NN in IN the DT general JJ price NN level NN anticipated VVN by IN the DT public NN in IN the DT period NN ahead RB . SENT interest NN payments NNS The DT return NN expressed VVN in IN percentages NNS earned VVN on IN an DT investment NN each DT year NN . SENT These DT payments NNS are VBP issued VVN every DT six CD months NNS based VVN on IN an DT annual JJ rate NN . SENT intermediate JJ targets NNS An DT intermediate JJ target NN is VBZ a DT variable NN such JJ as IN the DT money NN supply NN that WDT is VBZ not RB directly RB under IN the DT control NN of IN the DT central JJ bank NN , , but CC that WDT does VVZ respond VV fairly RB quickly RB to TO policy NN actions NNS , , is VBZ observable JJ frequently RB , , and CC bears VVZ a DT predictable JJ relationship NN to TO the DT ultimate JJ goals NNS of IN policy NN . SENT international JJ banking NN facility NN IBF NP Facilities NP which WDT , , in IN general JJ , , can MD accept VV time NN deposits NNS from IN foreign JJ customers NNS free JJ of IN reserve NN requirements NNS and CC interest NN rate NN limitations NNS , , and CC can MD lend VV to TO foreigners NNS if IN the DT funds NNS are VBP for IN the DT conduct NN of IN foreign JJ business NN outside IN of IN the DT U NP . SENT S NP . SENT Net JJ borrowing NN from IN these DT facilities NNS by IN domestic JJ banking NN offices NNS is VBZ subject JJ to TO reserve NN requirements NNS . SENT International NP Monetary NP Fund NP IMF NP An DT international JJ organization NN with IN 146 CD members NNS , , including VVG the DT United NP States NPS . SENT The DT main JJ functions NNS of IN the DT IMF NP are VBP to TO lend VV funds NNS to TO member NN nations NNS to TO finance VV temporary JJ balance NN of IN payments NNS problems NNS , , to TO facilitate VV the DT expansion NN and CC balanced JJ growth NN of IN international JJ trade NN , , and CC to TO promote VV international JJ monetary JJ cooperation NN among IN nations NNS . SENT The DT IMF NP also RB creates VVZ special JJ drawing NN rights NNS SDR's NP , , which WDT provide VVP member NN nations NNS with IN a DT source NN of IN additional JJ reserves NNS . SENT Member NN nations NNS are VBP required VVN to TO subscribe VV to TO a DT Fund NP quota NN , , paid VVN mainly RB in IN their PP$ own JJ currency NN . SENT The DT IMF NP grew VVD out RP of IN the DT Bretton NP Woods NP Conference NP of IN 1944 CD . SENT issue NN date NN The DT date NN when WRB a DT refund NN payment NN is VBZ issued VVN on IN a DT Treasury NP Security NP representing VVG the DT difference NN between IN the DT investment NN amount NN and CC the DT purchase NN price NN , , as RB determined VVN at IN auction NN . SENT J NP joint JJ float NN An DT arrangement NN by IN which WDT a DT group NN of IN currencies NNS maintain VVP a DT fixed JJ relationship NN relative JJ to TO each DT other JJ , , but CC move VV jointly RB relative JJ to TO another DT currency NN in IN response NN to TO supply VV and CC demand VV conditions NNS in IN the DT exchange NN market NN . SENT K NP Keynesian JJ Economics NP An DT economic JJ theory NN originated VVN by IN the DT British JJ economist NN John NP Maynard NP Keynes NP and CC his PP$ followers NNS . SENT Keynes NP maintained VVD that DT governments NNS should MD use VV the DT power NN of IN the DT budget NN to TO maintain VV economic JJ growth NN and CC stability NN and CC overcome VV the DT recessionary JJ cycles NNS common JJ in IN most RBS western JJ economies NNS . SENT key JJ rate NN The DT interest NN rate NN that IN controls NNS , , either CC directly RB or CC indirectly RB , , bank NN lending NN rates NNS and CC the DT cost NN of IN credit NN paid VVN by IN borrowers NNS . SENT L NP lender NN of IN last JJ resort NN As IN the DT nation's JJ central JJ bank NN , , the DT Federal NP Reserve NP has VHZ the DT authority NN and CC financial JJ resources NNS to TO act VV as IN lender NN of IN last JJ resort NN by IN extending VVG credit NN to TO depository JJ institutions NNS or CC to TO other JJ entities NNS in IN unusual JJ circumstances NNS involving VVG a DT national JJ or CC regional JJ emergency NN , , where WRB failure NN to TO obtain VV credit NN would MD have VH a DT severe JJ adverse JJ impact NN on IN the DT economy NN . SENT liquidity NN 1 CD The DT ability NN of IN a DT bank NN or CC business NN to TO meet VV its PP$ current JJ obligations NNS . SENT 2 LS the DT quality NN that WDT makes VVZ an DT asset NN quickly RB and CC readily RB convertible JJ into IN cash NN . SENT long JJ term NN interest NN rates NNS Interest NN rates NNS on IN loan NN contracts NNS or CC debt NN instruments NNS such JJ as IN Treasury NP bonds NNS or CC utility NN , , industrial JJ , , or CC municipal JJ bonds NNS having VHG maturities NNS greater JJR than IN one CD year NN . SENT Often RB called VVN capital NN market NN rates NNS . SENT M NP M NP 1 CD Measure NN of IN the DT U NP . SENT S NP . SENT money NN stock NN that WDT consists VVZ of IN currency NN held VVN by IN the DT public NN , , travelers NNS checks NNS , , demand NN deposits NNS , , and CC other JJ checkable JJ deposits NNS including VVG NOW RB negotiable JJ order NN of IN withdrawal NN and CC ATS JJ automatic JJ transfer NN service NN account NN balances NNS and CC share NN draft NN account NN balances NNS at IN credit NN unions NNS . SENT M NP 2 CD Measure NN of IN the DT U NP . SENT S NP . SENT money NN stock NN that WDT consists VVZ of IN M NP 1 CD , , certain JJ overnight JJ repurchase NN agreements NNS and CC certain JJ overnight JJ Eurodollars NNS , , savings NNS deposits NNS including VVG money NN market NN deposit NN accounts NNS , , time NN deposits NNS in IN amounts NNS of IN less JJR than IN 100 CD , , 000 CD , , and CC balances NNS in IN money NN market NN mutual JJ funds NNS other JJ than IN those DT restricted VVN to TO institutional JJ investors NNS . SENT M NP 3 CD Measure NN of IN the DT U NP . SENT S NP . SENT money NN stock NN that WDT consists VVZ of IN M NP 2 CD , , time NN deposits NNS of IN 100 CD , , 000 CD or CC more JJR at IN all DT depository JJ institutions NNS , , term NN repurchase NN agreements NNS in IN amounts NNS of IN 100 CD , , 000 CD or CC more JJR , , certain JJ term NN Eurodollars NNS , , and CC balances NNS in IN money NN market NN mutual JJ funds NNS restricted VVN to TO institutional JJ investors NNS . SENT macroeconomics NN The DT study NN of IN economics NNS in IN terms NNS of IN whole JJ systems NNS with IN reference NN to TO general JJ levels NNS of IN output NN and CC income NN and CC to TO the DT interrelations NNS among IN sectors NNS of IN the DT economy NN . SENT See VV also RB microeconomics NNS . SENT margin NN With IN regard NN to TO securities NNS , , this DT term NN refers VVZ to TO a DT fractional JJ amount NN of IN full JJ value NN , , or CC the DT equity NN outlay NN down IN payment NN required VVN for IN an DT investment NN in IN securities NNS purchased VVN on IN credit NN . SENT margin NN stock NN Any DT stock NN listed VVN on IN a DT national JJ securities NNS exchange NN , , any DT over IN the DT counter JJ security NN approved VVN by IN the DT SEC NP for IN trading NN in IN the DT national JJ market NN system NN or CC appearing VVG on IN the DT Board's NP list NN of IN over IN the DT counter JJ margin NN stock NN , , and CC most RBS mutual JJ funds NNS . SENT market NN interest NN rates NNS Rates NNS of IN interest NN paid VVN on IN deposits NNS and CC other JJ investments NNS , , determined VVN by IN the DT interaction NN of IN the DT supply NN of IN and CC demand NN for IN funds NNS in IN financial JJ markets NNS . SENT matched VVN sale NN purchase NN agreements NNS An DT agreement NN in IN which WDT the DT Federal NP Reserve NP sells VVZ a DT security NN outright RB for IN immediate JJ delivery NN to TO a DT dealer NN or CC foreign JJ central JJ bank NN , , with IN an DT agreement NN to TO buy VV the DT security NN back RB on IN a DT specific JJ date NN usually RB within IN 7 CD days NNS at IN the DT same JJ price NN . SENT Matched VVN sale NN purchase NN agreements NNS are VBP the DT reverse NN of IN repurchase NN agreements NNS and CC allow VV the DT Federal NP Reserve NP to TO withdraw VV reserves NNS on IN a DT temporary JJ basis NN . SENT member NN bank NN Depository NN institution NN that WDT is VBZ a DT member NN of IN the DT Federal NP Reserve NP System NP . SENT All DT federally RB chartered JJ banks NNS are VBP automatically RB members NNS of IN the DT System NP . SENT State NP chartered VVD banks NNS are VBP divided VVN into IN those DT that WDT are VBP members NNS of IN the DT System NP state NN member NN banks NNS and CC those DT that WDT are VBP not RB nonmember JJ banks NNS . SENT microeconomics NNS The DT study NN of IN economics NNS in IN terms NNS of IN individual JJ areas NNS of IN activity NN as IN a DT firm NN , , household NN , , or CC prices NNS . SENT See VV also RB macroeconomics NNS . SENT monetary JJ aggregates NNS See VV money NN supply NN . SENT monetary JJ base NN Those DT assets NNS that IN depository JJ institutions NNS can MD use VV to TO meet VV their PP$ legal JJ reserve NN requirements NNS . SENT The DT monetary JJ base NN consists VVZ of IN deposits NNS reserves NNS held VVN by IN depository JJ institutions NNS at IN Federal NP Reserve NP Banks NPS plus CC Treasury NP currency NN and CC coins NNS outstanding JJ . SENT Monetary NP Control NP Act NP of IN 1980 CD MCA NP An DT Act NN which WDT requires VVZ that IN all DT banks NNS and CC all DT institutions NNS that WDT accept VVP deposits NNS from IN the DT public NN make VV periodic JJ reports NNS to TO the DT Federal NP Reserve NP System NP . SENT Starting VVG in IN September NP 1981 CD , , the DT Fed NP charged VVD banks NNS for IN a DT range NN of IN services NNS that IN it PP had VHD provided VVN free JJ in IN the DT past NN , , including VVG check NN clearing NN , , wire NN transfer NN of IN funds NNS , , and CC the DT use NN of IN automated JJ clearinghouse NN facilities NNS . SENT monetary JJ policy NN The DT regulation NN , , by IN the DT Federal NP Reserve NP System NP , , of IN the DT money NN supply NN in IN order NN to TO maximize VV production NN and CC employment NN and CC stabilize VV prices NNS . SENT See VV also RB contractionary JJ monetary JJ policy NN and CC expansionary JJ monetary JJ policy NN . SENT monetize VV To TO convert VV assets NNS into IN money NN . SENT money NN market NN Figurative JJ expression NN for IN the DT informal JJ network NN of IN dealers NNS and CC investors NNS over IN which WDT short JJ term NN debt NN securities NNS are VBP purchased VVN and CC sold VVN . SENT Money NN market NN securities NNS generally RB are VBP highly RB liquid JJ securities NNS that WDT mature VVP in IN less JJR than IN one CD year NN , , typically RB in IN less JJR than IN ninety CD days NNS . SENT money NN market NN rates NNS See VV short JJ term NN interest NN rates NNS . SENT money NN multiplier NN The DT relationship NN between IN the DT monetary JJ base NN and CC the DT money NN supply NN . SENT The DT multiplier NN explains VVZ the DT money NN supply NN has VHZ expanded VVN through IN the DT banking NN system NN by IN distribution NN of IN excess JJ reserves NNS . SENT money NN supply NN The DT amount NN of IN money NN coins NNS , , paper NN currency NN , , and CC checking VVG accounts NNS that WDT is VBZ in IN circulation NN in IN the DT economy NN . SENT moral JJ hazard NN The DT risk NN that IN a DT party NN to TO a DT transaction NN has VHZ not RB entered VVN into IN a DT contract NN in IN good JJ faith NN , , has VHZ provided VVN misleading JJ information NN about IN its PP$ assets NNS , , liabilities NNS , , or CC credit NN capacity NN , , or CC has VHZ an DT incentive NN to TO take VV unusual JJ risks NNS in IN a DT desperate JJ attempt NN to TO earn VV a DT profit NN before IN the DT contract NN settles VVZ . SENT multilateralism NN An DT international JJ policy NN intended VVN to TO free VV international JJ trade NN from IN the DT restrictions NNS of IN bilateralism NN . SENT Multilateralism NN represents VVZ an DT effort NN to TO permit VV nations NNS to TO specialize VV in IN production NN and CC exchange NN in IN accordance NN with IN the DT principle NN of IN comparative JJ advantage NN . SENT mutual JJ savings NNS banks NNS Banks NNS which WDT accept VVP deposits NNS primarily RB from IN individuals NNS and CC place VV a DT large JJ portion NN of IN their PP$ funds NNS into IN mortgage NN loans NNS . SENT These DT institutions NNS are VBP prominent JJ in IN many JJ of IN the DT northeastern JJ states NNS . SENT Savings NP banks NNS generally RB have VHP broader JJR asset NN and CC liability NN powers NNS than IN savings NNS and CC loan NN associations NNS but CC narrower JJR powers NNS than IN commercial JJ banks NNS . SENT Savings NP banks NNS are VBP authorized VVN to TO offer VV checking VVG type NN accounts NNS . SENT N NP National NP Association NP Of IN Securities NPS Dealers NPS NASD NP A DT self NN regulatory JJ organization NN with IN jurisdiction NN over IN certain JJ broker NN dealers NNS . SENT The DT NASD NP requires VVZ member NN brokers NNS to TO register VV , , and CC conducts VVZ examinations NNS for IN compliance NN with IN net JJ capital NN requirements NNS and CC other JJ regulations NNS . SENT It PP also RB conducts VVZ market NN surveillance NN of IN the DT over IN the DT counter JJ OTC NP securities NNS market NN . SENT National NP Association NP of IN Securities NPS Dealers NPS Automated VVN Quotations NNS NASDAQ NP is VBZ a DT subsidiary NN of IN the DT NASD NP which WDT facilitates VVZ the DT trading NN of IN approximately RB 5 CD , , 000 CD most RBS active JJ OTC NP issues NNS through IN an DT electronically RB connected VVN network NN . SENT National NP Association NP of IN Securities NPS Dealers NPS Automated VVN Quotations NNS NASDAQ NP An DT automated JJ information NN network NN that WDT provides VVZ brokers NNS and CC dealers NNS with IN price NN quotations NNS on IN securities NNS traded VVN over IN the DT counter NN . SENT National NP Credit NP Union NP Administration NP NCUA NP An DT independent JJ federal JJ agency NN that WDT supervises VVZ and CC insures VVZ both DT federal JJ and CC state NN chartered JJ credit NN unions NNS . SENT NCUA NP is VBZ entirely RB funded VVN by IN credit NN unions NNS and CC receives VVZ no DT tax NN dollars NNS . SENT natural JJ rate NN of IN unemployment NN The DT rate NN of IN unemployment NN attainable JJ without IN stimulating VVG an DT increase NN in IN the DT inflation NN rate NN . SENT negative JJ amortization NN An DT increase NN in IN the DT principal NN of IN a DT loan NN , , when WRB the DT loan NN payments NNS are VBP insufficient JJ to TO pay VV the DT interest NN due RB . SENT The DT unpaid JJ interest NN is VBZ added VVN to TO the DT outstanding JJ loan NN balance NN causing VVG the DT principal NN to TO increase VV rather RB than IN decrease NN as IN payments NNS are VBP made VVN . SENT This DT situation NN typically RB occurs VVZ in IN an DT adjustable JJ mortgage NN with IN an DT annual JJ cap NN limiting VVG any DT increases NNS in IN the DT interest NN rate NN , , and CC also RB in IN a DT graduated VVN payment NN mortgage NN , , which WDT has VHZ low JJ initial JJ payments NNS so IN moderate JJ income NN borrowers NNS can MD afford VV to TO make VV the DT loan NN payments NNS . SENT Negotiable JJ Order NN of IN Withdrawal NN account NN NOW RB An DT interest NN earning VVG account NN on IN which WDT checks NNS may MD be VB drawn VVN . SENT Withdrawals NNS from IN NOW NP accounts NNS may MD be VB offered VVN by IN commercial JJ banks NNS , , mutual JJ savings NNS banks NNS , , and CC savings NNS and CC loan NN associations NNS and CC may MD be VB owned VVN only RB by IN individuals NNS and CC certain JJ nonprofit JJ organizations NNS and CC governmental JJ units NNS . SENT nominal JJ interest NN rates NNS Current JJ stated VVN rates NNS of IN interest NN paid VVN or CC earned VVN . SENT noncompetitive JJ bidders NNS One CD of IN two CD categories NNS of IN bidders NNS on IN Treasury NP securities NNS . SENT competitive JJ and CC noncompetitive JJ . SENT Noncompetitive JJ bidders NNS , , made VVD up RP of IN individuals NNS or CC financial JJ institutions NNS , , receive VV the DT average JJ price NN and CC investment NN yield NN of IN the DT accepted JJ competitive JJ bids NNS . SENT nonmember NN bank NN Depository NN institution NN that WDT is VBZ not RB a DT member NN of IN the DT Federal NP Reserve NP System NP . SENT Specifically RB , , a DT state NN chartered VVD commercial JJ bank NN that WDT has VHZ elected VVN not RB to TO join VV the DT System NP . SENT nonmember JJ depository JJ institution NN A DT depository JJ institution NN commercial JJ bank NN , , mutual JJ savings NNS bank NN , , savings NNS and CC loan NN association NN , , credit NN union NN , , or CC U NP . SENT S NP . SENT agency NN or CC branch NN of IN a DT foreign JJ bank NN that WDT is VBZ not RB a DT member NN of IN the DT Federal NP Reserve NP System NP . SENT Nonmember JJ depository JJ institutions NNS that WDT offer VVP transaction NN accounts NNS or CC nonpersonal JJ time NN deposits NNS are VBP subject JJ to TO reserve NN requirements NNS set VVN by IN the DT Federal NP Reserve NP , , and CC have VH access NN to TO the DT Federal NP Reserve NP discount NN window NN and CC Federal NP Reserve NP services NNS on IN the DT same JJ terms NNS as IN member NN banks NNS . SENT note VV A DT medium JJ term NN obligation NN of IN the DT U NP . SENT S NP . SENT Treasury NP . SENT 2 CD 10 CD years NNS maturity NN . SENT See VV also RB bill NN and CC bond NN . SENT numismatic JJ Pertaining VVG to TO coins NNS and CC the DT collection NN of IN coins NNS and CC medals NNS . SENT O NP Office NP of IN Thrift NP Supervision NP OTS NP A DT bureau NN of IN the DT Treasury NP Department NP established VVD in IN August NP 1989 CD . SENT OTS NP has VHZ the DT authority NN to TO charter JJ federal JJ Thrift NN Institutions NNS and CC serves VVZ as IN the DT primary JJ regulator NN of IN approximately RB 2 CD , , 000 CD federal JJ and CC state NN chartered JJ thrifts NNS . SENT Office NN of IN the DT Comptroller NN of IN the DT Currency NP OCC NP An DT independent JJ bureau NN of IN the DT Treasury NP Department NP and CC the DT oldest JJS federal JJ financial JJ regulatory JJ body NN . SENT The DT OCC NP oversees VVZ the DT nation's NNS federally RB chartered VVN banks NNS and CC promotes VVZ a DT system NN of IN bank NN supervision NN and CC regulation NN that IN . SENT promotes VVZ safety NN and CC soundness NN by IN requiring VVG that IN national JJ banks NNS adhere VV to TO sound VV management NN principles NNS and CC comply VV with IN the DT law NN . SENT and CC encourages VVZ banks NNS to TO satisfy VV customer NN and CC community NN needs NNS while IN remaining VVG efficient JJ competitors NNS in IN the DT financial JJ services NNS market NN . SENT open JJ end NN credit NN A DT line NN of IN credit NN that WDT may MD be VB used VVN repeatedly RB up RB to TO a DT certain JJ limit NN . SENT Also RB called VVN a DT charge NN account NN or CC revolving JJ credit NN . SENT open JJ end NN lease VV A DT lease NN that WDT may MD involve VV a DT balloon NN payment NN based VVN on IN the DT value NN of IN the DT property NN when WRB it PP is VBZ returned VVN . SENT Also RB called VVN finance NN lease NN . SENT open JJ market NN operations NNS Purchases NNS and CC sales NNS of IN government NN securities NNS and CC certain JJ other JJ securities NNS in IN the DT open JJ market NN , , through IN the DT Domestic JJ Trading NN Desk NN at IN the DT Federal NP Reserve NP Bank NP of IN New NP York NP as RB directed VVD by IN the DT Federal NP Open NP Market NP Committee NP FOMC NP , , to TO influence VV the DT volume NN of IN money NN and CC credit NN in IN the DT economy NN . SENT Purchases NNS inject VV reserves NNS into IN the DT banking NN system NN and CC stimulate VV growth NN of IN money NN and CC credit NN . SENT sales NNS do VVP the DT opposite NN . SENT option NN The DT right NN to TO buy VV or CC sell VV a DT security NN or CC commodity NN at IN a DT specified JJ price NN during IN a DT specified JJ period NN . SENT The DT holder NN of IN an DT option NN has VHZ the DT right NN , , but CC not RB the DT obligation NN , , to TO buy VV call NN option NN or CC sell VV put VVN option NN a DT security NN or CC commodity NN at IN a DT specified JJ price NN during IN a DT specified JJ period NN . SENT The DT writer NN of IN an DT option NN is VBZ obligated VVN to TO sell VV call NN option NN or CC purchase NN put VVD option NN the DT instrument NN only RB if IN the DT holder NN chooses VVZ to TO exercise VV the DT option NN . SENT OTC NP margin NN bond NN A DT debt NN security NN , , not RB traded VVN on IN the DT national JJ securities NNS exchange NN , , which WDT meets VVZ certain JJ Regulation NN T NN requirements NNS as RB to TO size NN of IN original JJ offering NN , , available JJ information NN , , and CC status NN of IN interest NN payments NNS . SENT See VV also RB over IN the DT counter JJ OTC NP . SENT overdraft NN checking NN account VVP A DT checking NN account NN associated VVN with IN a DT line NN of IN credit NN that WDT allows VVZ a DT person NN to TO write VV checks NNS for IN more JJR than IN the DT actual JJ balance NN in IN the DT account NN , , generally RB with IN a DT finance NN charge NN on IN the DT overdraft NN . SENT over IN the DT counter JJ OTC NP Figurative JJ term NN for IN the DT means NN of IN trading NN securities NNS that WDT are VBP not RB listed VVN on IN an DT organized JJ stock NN exchange NN such JJ as IN the DT New NP York NP Stock NP Exchange NP , , as RB in IN OTC NP margin NN bonds NNS . SENT Over IN the DT counter JJ trading NN is VBZ done VVN by IN broker NN dealers NNS who WP communicate VV by IN telephone NN and CC computer NN networks NNS . SENT P NN par NN value NN The DT full JJ face NN value NN of IN a DT security NN . SENT payments NNS system NN Collective JJ term NN for IN mechanisms NNS both CC paper NN backed VVN and CC electronic JJ for IN moving VVG funds NNS , , payments NNS , , and CC money NN among IN financial JJ institutions NNS throughout IN the DT nation NN . SENT The DT Federal NP Reserve NP plays VVZ a DT major JJ role NN in IN the DT nation's JJ payments NNS system NN through IN distribution NN of IN currency NN and CC coin NN , , processing VVG of IN checks NNS , , electronic JJ transfer NN of IN funds NNS , , and CC the DT operation NN of IN automated JJ clearinghouses NNS that IN transfer NN funds NNS electronically RB among IN depository JJ institutions NNS . SENT various JJ private JJ organizations NNS also RB perform VVP payments NNS system NN functions NNS . SENT permissible JJ nonbank NP activities NNS Financial NP activities NNS closely RB related VVN to TO banking NN that WDT may MD be VB engaged VVN in IN by IN bank NN holding NN companies NNS BHC's NP , , either CC directly RB or CC through IN nonbank NP subsidiaries NNS . SENT For IN example NN , , a DT BHC NP might MD own VV finance NN companies NNS or CC engage VV in IN mortgage NN banking NN . SENT The DT Federal NP Reserve NP Board NP determines VVZ which WDT activities NNS are VBP closely RB related VVN to TO banking NN . SENT Before IN making VVG such JJ activities NNS permissible JJ , , the DT Board NP must MD determine VV that DT performance NN of IN the DT activities NNS by IN bank NN holding NN companies NNS is VBZ in IN the DT public JJ interest NN . SENT points NNS In IN reference NN to TO a DT loan NN , , points NNS consist VVP of IN a DT lump NN sum NN payment NN made VVN by IN the DT borrower NN at IN the DT outset NN of IN the DT loan NN period NN . SENT Generally RB , , each DT point NN equals VVZ one CD percent NN of IN the DT loan NN amount NN . SENT See VV also RB seller's JJ points NNS . SENT potential JJ output NN The DT level NN of IN real JJ GDP NP gross JJ domestic JJ product NN that WDT can MD be VB sustained VVN in IN the DT long JJ run NN and CC that DT is VBZ consistent JJ with IN constant JJ inflation NN . SENT premium NN The DT amount NN by IN which WDT the DT auction NN price NN of IN a DT bill NN , , note NN , , or CC bond NN is VBZ higher JJR than IN its PP$ face NN value NN . SENT principal JJ payments NNS The DT face NN amount NN or CC par NN value NN of IN a DT debt NN instrument NN where WRB interest NN is VBZ paid VVN . SENT The DT interest NN payment NN is VBZ not RB part NN of IN the DT principal NN . SENT productivity NN The DT amount NN of IN physical JJ output NN for IN each DT unit NN of IN productive JJ input NN . SENT pro JJ rata NN 1 CD . SENT According VVG to TO the DT rate NN Latin JJ . SENT 2 LS . SENT In IN proportion NN to TO a DT total JJ amount NN . SENT For IN example NN , , if IN a DT contract NN is VBZ terminated VVN prior RB to TO the DT end NN of IN the DT period NN for IN which WDT payment NN has VHZ been VBN given VVN , , a DT pro JJ rata NN return NN of IN the DT payment NN is VBZ made VVN , , in IN proportion NN to TO the DT unused JJ period NN of IN time NN remaining VVG . SENT purchasing VVG power NN parity NN theory NN A DT theory NN by IN which WDT the DT exchange NN rate NN between IN any DT two CD currencies NNS adjusts VVZ to TO reflect VV changes NNS in IN the DT price NN levels NNS within IN the DT two CD countries NNS . SENT purpose NN credit NN Credit NN used VVN for IN the DT purpose NN of IN buying NN , , carrying VVG , , or CC trading NN in IN securities NNS . SENT Q NN qualifying VVG ratio NN A DT borrower's NNS total VVP regular JJ monthly JJ debt NN as IN a DT percentage NN of IN gross JJ monthly JJ income NN . SENT quarterlies NNS Interim JJ financial JJ reports NNS on IN the DT condition NN of IN a DT publicly RB held VVN company NN , , released VVD each DT quarter NN of IN its PP$ fiscal JJ year NN . SENT R SYM real JJ GDP NP GDP NP gross JJ domestic JJ product NN adjusted VVN for IN inflation NN . SENT Real NP GDP NP provides VVZ the DT value NN of IN GDP NP in IN constant JJ dollars NNS , , which WDT is VBZ used VVN as IN an DT indicator NN of IN the DT volume NN of IN the DT nation's JJ output NN . SENT real JJ interest NN rates NNS Interest NN rates NNS adjusted VVN for IN the DT expected VVN erosion NN of IN purchasing VVG power NN resulting VVG from IN inflation NN . SENT Technically RB defined VVN as IN nominal JJ interest NN rates NNS minus CC the DT expected VVN rate NN of IN inflation NN . SENT recession NN A DT significant JJ decline NN in IN general JJ economic JJ activity NN extending VVG over IN a DT period NN of IN time NN . SENT recognition NN lag VVP The DT time NN it PP takes VVZ for IN policymakers NNS to TO recognize VV the DT state NN of IN the DT economy NN . SENT See VV also RB time NN lag NN , , implementation NN lag NN , , and CC impact NN lag NN . SENT Regional NP Check NP Processing NP Center NP RCPC NP A NP Federal NP Reserve NP check NN processing NN operation NN that WDT clears VVZ checks NNS drawn VVN on IN depository JJ institutions NNS located VVN within IN a DT specified JJ area NN . SENT RCPCs NNS expedite VV collection NN and CC settlement NN of IN checks NNS within IN the DT area NN on IN an DT overnight JJ basis NN . SENT renegotiable JJ rate NN A DT type NN of IN variable JJ loan NN rate NN involving VVG a DT renewable JJ short JJ term NN balloon NN note NN . SENT The DT interest NN rate NN on IN the DT loan NN is VBZ generally RB fixed VVN during IN the DT term NN of IN the DT note NN , , but CC when WRB the DT balloon NN comes VVZ due JJ , , the DT lender NN may MD refinance VV it PP at IN a DT higher JJR rate NN . SENT In IN order NN for IN the DT loan NN to TO be VB fully RB amortized VVN , , periodic JJ refinancing NN may MD be VB necessary JJ . SENT Also RB see VV balloon NN payment NN . SENT repurchase NN agreements NNS An DT agreement NN by IN which WDT , , for IN example NN , , the DT Federal NP Reserve NP purchases VVZ a DT security NN for IN immediate JJ delivery NN and CC receives VVZ interest NN at IN a DT specific JJ rate NN from IN a DT government NN securities NNS dealer NN , , with IN an DT agreement NN to TO sell VV the DT security NN back RB at IN the DT same JJ price NN by IN a DT specific JJ date NN usually RB within IN 15 CD days NNS . SENT This DT arrangement NN allows VVZ the DT Federal NP Reserve NP to TO inject VV reserves NNS into IN the DT banking NN system NN on IN a DT temporary JJ basis NN to TO meet VV a DT temporary JJ need NN and CC to TO withdraw VV these DT reserves NNS as RB soon RB as IN that DT need NN has VHZ passed VVN . SENT required JJ reserves NNS Funds NNS that IN a DT depository JJ institution NN is VBZ required VVN to TO maintain VV as IN vault NN cash NN or CC on IN deposit NN with IN a DT Federal NP Reserve NP Bank NP . SENT required VVN amount NN varies VVZ according VVG to TO required JJ reserve NN ratios NNS set VVN by IN the DT Board NP of IN Governors NP and CC the DT volume NN of IN reservable JJ liabilities NNS held VVN by IN the DT institution NN . SENT required VVN clearing NN balance NN Amount NN kept VVN by IN a DT depository JJ institution NN in IN an DT account NN at IN a DT Federal NP Reserve NP Bank NP , , in IN addition NN to TO its PP$ required JJ reserve NN balance NN , , to TO ensure VV that IN it PP can MD meet VV its PP$ daily JJ transaction NN obligations NNS without IN overdrawing VVG its PP$ required JJ reserve NN account NN and CC thereby RB incurring VVG a DT penalty NN . SENT Required VVN clearing NN balances NNS earn VVP credits NNS that WDT can MD be VB used VVN to TO pay VV for IN services NNS provided VVN by IN the DT Federal NP Reserve NP . SENT required VVN reserve NN balance NN Portion NN of IN its PP$ required JJ reserves NNS that IN a DT depository JJ institution NN must MD hold VV in IN an DT account NN at IN a DT Federal NP Reserve NP Bank NP . SENT reserves VVZ A DT depository JJ institution's NN vault NN cash NN up RB to TO the DT level NN of IN its PP$ required JJ reserves NNS plus CC balances NNS in IN its PP$ reserve NN account NN not RB including VVG funds NNS applied VVN to TO its PP$ required JJ clearing NN balance NN . SENT revolving JJ credit NN See VV open JJ end NN credit NN . SENT S NP savings NNS and CC loan NN association NN S NP L NP Historically RB , , a DT depository JJ institution NN that WDT accepted VVD deposits NNS mainly RB from IN individuals NNS and CC invested VVN heavily RB in IN residential JJ mortgage NN loans NNS . SENT Although IN still RB primarily RB residential JJ lenders NNS , , S NP Ls NP may MD now RB offer VV checking VVG type NN deposits NNS and CC make VV a DT wider JJR range NN of IN loans NNS . SENT savings NNS bank NN Depository NN institution NN historically RB engaged VVN primarily RB in IN accepting VVG consumer NN savings NNS deposits NNS and CC in IN originating VVG and CC investing VVG in IN securities NNS and CC residential JJ mortgage NN loans NNS . SENT now RB may MD offer VV checking VVG type NN deposits NNS and CC make VV a DT wider JJR range NN of IN loans NNS . SENT Securities NPS and CC Exchange NP Commission NP SEC NP An DT independent JJ , , non JJ partisan JJ , , quasi NP judicial JJ regulatory JJ agency NN with IN responsibility NN for IN administering VVG the DT federal JJ securities NNS laws NNS . SENT The DT purpose NN of IN these DT laws NNS is VBZ to TO protect VV investors NNS and CC to TO ensure VV that DT investors NNS have VHP access NN to TO disclosure NN of IN all DT material NN information NN concerning VVG publicly RB traded VVN securities NNS . SENT The DT Commission NP also RB regulates VVZ firms NNS engaged VVN in IN the DT purchase NN or CC sale NN of IN securities NNS , , people NNS who WP provide VVP investment NN advice NN , , and CC investment NN companies NNS . SENT securities NNS Paper NP certificates NNS definitive JJ securities NNS or CC electronic JJ records NNS book NN entry NN securities NNS evidencing VVG ownership NN of IN equity NN stocks NNS or CC debt NN obligations NNS bonds NNS . SENT security NN interest NN The DT property NN or CC a DT portion NN of IN property NN offered VVN as IN security NN . SENT seigniorage NN The DT profit NN which WDT results VVZ from IN the DT difference NN between IN the DT cost NN of IN making VVG coins NNS and CC currency NN and CC the DT exchange NN value NN of IN coin NN and CC currency NN in IN the DT market NN . SENT self NN regulatory JJ organizations NNS SRO NN Nongovernment NN organizations NNS that WDT have VHP statutory JJ responsibility NN to TO regulate VV their PP$ own JJ members NNS such JJ as IN the DT New NP York NP Stock NP Exchange NP and CC National NP Association NP Of IN Securities NPS Dealers NPS . SENT seller's NN points NNS In IN reference NN to TO a DT loan NN , , seller's NN points NNS consist VVP of IN a DT lump NN sum NN paid VVN by IN the DT seller NN to TO the DT buyer's JJ creditor NN to TO reduce VV the DT cost NN of IN the DT loan NN to TO the DT buyer NN . SENT This DT payment NN is VBZ either RB required VVN by IN the DT creditor NN or CC volunteered VVD by IN the DT seller NN , , usually RB in IN a DT loan NN to TO buy VV real JJ estate NN . SENT Generally RB , , one CD point NN equals VVZ one CD percent NN of IN the DT loan NN amount NN . SENT See VV also RB points NNS . SENT short JJ term NN interest NN rates NNS Interest NN rates NNS on IN loan NN contracts NNS or CC debt NN instruments NNS such JJ as IN Treasury NP bills NNS , , bank NN certificates NNS of IN deposit NN , , or CC commercial JJ paper NN having VHG maturities NNS of IN less JJR than IN one CD year NN . SENT Often RB called VVN money NN market NN rates NNS . SENT small JJ saver NN certificate NN A DT certificate NN of IN deposit NN , , with IN a DT minimum JJ maturity NN of IN 2 CD 1 CD 2 CD years NNS , , offered VVN by IN banks NNS and CC thrift NN institutions NNS to TO individuals NNS . SENT The DT interest NN rate NN on IN these DT certificates NNS is VBZ related VVN to TO the DT average JJ yield NN on IN 2 CD 1 CD 2 CD year NN Treasury NN securities NNS , , in IN accordance NN with IN regulations NNS issued VVN by IN the DT Depository JJ Institutions NP Deregulation NN Committee NP . SENT There EX is VBZ no DT minimum JJ denomination NN required VVN on IN these DT certificates NNS . SENT special JJ drawing NN rights NNS SDR NP A DT type NN of IN international JJ money NN created VVN by IN the DT International NP Monetary NP Fund NP IMF NP and CC allocated VVN to TO its PP$ member NN nations NNS . SENT SDRs NNS are VBP an DT international JJ reserve NN asset NN , , although IN they PP are VBP only RB accounting VVG entries NNS not RB actual JJ coin NN or CC paper NN , , and CC not RB backed VVN by IN precious JJ metal NN . SENT Subject JJ to TO certain JJ conditions NNS of IN the DT IMF NP , , a DT nation NN that WDT has VHZ a DT balance NN of IN payments NNS deficit NN can MD use VV SDRs NNS to TO settle VV debts NNS to TO another DT nation NN or CC to TO the DT IMF NP . SENT spot NN transaction NN A DT foreign JJ exchange NN transaction NN in IN which WDT each DT party NN promises VVZ to TO pay VV a DT certain JJ amount NN of IN currency NN to TO the DT other JJ on IN the DT same JJ day NN or CC within IN one CD or CC two CD days NNS . SENT state NN member NN bank NN A DT bank NN that WDT is VBZ chartered VVN by IN a DT state NN and CC has VHZ elected VVN to TO join VV the DT Federal NP Reserve NP System NP . SENT structural JJ unemployment NN Long JJ term NN joblessness NN caused VVN by IN shifts NNS in IN the DT economy NN . SENT Often RB structural JJ unemployment NN occurs VVZ because IN of IN changes NNS in IN technology NN . SENT street NN name NN Securities NNS held VVN in IN the DT name NN of IN brokers NNS , , or CC banks NNS , , or CC their PP$ nominees NNS , , instead RB of IN in IN the DT customer's JJ name NN . SENT surcharge VV An DT extra JJ charge NN imposed VVN on IN those DT who WP purchase VVP with IN a DT credit NN card NN instead RB of IN cash NN . SENT Currently RB , , surcharges VVZ for IN credit NN card NN purchases NNS are VBP prohibited VVN . SENT swap VV An DT arrangement NN between IN the DT central JJ banks NNS of IN two CD countries NNS for IN standby JJ credit NN to TO facilitate VV the DT exchange NN of IN each DT other's JJ currencies NNS . SENT swap NN arrangements NNS Short JJ term NN reciprocal JJ lines NNS of IN credit NN between IN the DT Federal NP Reserve NP and CC 14 CD foreign JJ central JJ banks NNS as RB well RB as IN the DT Bank NP for IN International NP Settlements NP . SENT Through IN a DT swap NN transaction NN , , the DT Federal NP Reserve NP can MD , , in IN effect NN , , borrow VVP foreign JJ currency NN in IN order NN to TO purchase VV dollars NNS in IN the DT foreign JJ exchange NN market NN . SENT In IN doing VVG so RB , , the DT demand NN for IN dollars NNS and CC the DT dollar's JJ foreign JJ exchange NN value NN are VBP increased VVN . SENT Similarly RB , , the DT Federal NP Reserve NP can MD temporarily RB provide VV dollars NNS to TO foreign JJ central JJ banks NNS through IN swap NN arrangements NNS . SENT Society NN for IN Worldwide NP Interbank NN Financial NP Telecommunications NP SWIFT NN A DT message NN writing NN system NN that WDT connects VVZ worldwide JJ participating VVG banks NNS , , primarily RB for IN the DT purpose NN of IN communicating VVG payment NN information NN . SENT Frequently RB , , the DT SWIFT JJ message NN is VBZ only RB part NN of IN an DT international JJ payment NN . SENT T NN tender NN An DT application NN or CC offer NN to TO purchase VV a DT U NP . SENT S NP . SENT Treasury NP bill NN , , note NN , , or CC bond NN . SENT The DT Desk NN The DT trading NN desk NN at IN the DT Federal NP Reserve NP Bank NP of IN New NP York NP through IN which WDT open JJ market NN purchases NNS and CC sales NNS of IN government NN and CC federal JJ agency NN securities NNS are VBP made VVN . SENT The DT desk NN maintains VVZ direct JJ telephone NN communication NN with IN major JJ government NN securities NNS dealers NNS . SENT A DT foreign JJ desk NN at IN the DT Federal NP Reserve NP Bank NP of IN New NP York NP conducts VVZ transactions NNS in IN the DT foreign JJ exchange NN market NN . SENT thrift NN institution NN A DT general JJ term NN encompassing VVG savings NNS banks NNS , , savings NNS and CC loan NN associations NNS , , and CC credit NN unions NNS . SENT Thrift NP Institutions NP Advisory NP Council NP TIAC NP A DT council NN , , established VVN following VVG the DT passage NN of IN the DT Monetary NP Control NP Act NP of IN 1980 NP , , whose WP$ purpose NN is VBZ to TO provide VV information NN and CC views NNS on IN the DT special JJ needs NNS and CC problems NNS of IN thrifts NNS . SENT The DT group NN is VBZ comprised VVN of IN representatives NNS of IN savings NN banks NNS , , savings NNS and CC loan NN associations NNS , , and CC credit NN unions NNS . SENT time NN lags NNS In IN stabilization NN policy NN , , refers VVZ to TO the DT period NN between IN an DT economic JJ event NN and CC the DT impact NN of IN the DT economic JJ policy NN to TO correct VV it PP . SENT See VV also RB recognition NN lag NN , , implementation NN lag NN , , and CC impact NN lag NN . SENT trade NN deficit NN The DT amount NN by IN which WDT merchandise NN imports NNS exceed VVP merchandise NN exports NNS . SENT trade NN weighted JJ value NN of IN the DT dollar NN The DT value NN of IN the DT dollar NN pegged VVN to TO or CC expressed VVN relative JJ to TO a DT market NN basket NN of IN selected JJ foreign JJ currencies NNS . SENT The DT Federal NP Reserve NP calculates VVZ a DT trade NN weighted JJ value NN of IN the DT dollar NN based VVN on IN the DT weighted JJ average JJ exchange NN value NN of IN the DT dollar NN against IN the DT currencies NNS of IN 10 CD industrial JJ countries NNS . SENT transaction NN account VVP A DT checking NN or CC similar JJ account NN from IN which WDT transfers NNS can MD be VB made VVN to TO third JJ parties NNS . SENT Demand NN deposit NN accounts NNS , , negotiable JJ order NN of IN withdrawal NN NOW RB accounts VVZ , , automatic JJ transfer NN service NN ATS NN accounts NNS , , and CC credit NN union NN share NN draft NN accounts NNS are VBP examples NNS of IN transaction NN accounts NNS at IN banks NNS and CC other JJ depository JJ institutions NNS . SENT Treasury NP bill NN See VV bill NN . SENT Treasury NP bond NN See VV bond NN . SENT Treasury NP Direct NP Service NP provided VVD to TO the DT U NP . SENT S NP . SENT Department NP of IN the DT Treasury NN whereby WRB Federal NP Reserve NP Banks NPS hold VVP book NN entry NN Treasury NN securities NNS purchased VVN by IN individuals NNS . SENT Treasury NP note NN See VV note NN . SENT Treasury NP securities NNS See VV securities NNS . SENT Total JJ Nonfinancial JJ Debt NN Includes VVZ outstanding JJ credit NN market NN debt NN of IN federal JJ , , state NN , , and CC local JJ governments NNS and CC of IN private JJ nonfinancial JJ sectors NNS including VVG mortgages NNS and CC other JJ kinds NNS of IN consumer NN credit NN and CC bank NN loans NNS , , corporate JJ bonds NNS , , commercial JJ paper NN , , bankers NNS acceptances NNS , , and CC other JJ debt NN instruments NNS . SENT Twelve NP L NP 12 NP L NP Refers VVZ to TO the DT Federal NP Reserve NP Bank NP of IN San NP Francisco NP , , which WDT is VBZ the DT Twelfth JJ District NN in IN the DT Federal NP Reserve NP System NP . SENT L NP is VBZ the DT official JJ letter NN for IN the DT Twelfth JJ District NP seal NN , , being VBG the DT twelfth JJ letter NN of IN the DT alphabet NN . SENT U NP uncertain JJ responses NNS In IN stabilization NN policy NN , , the DT situation NN when WRB the DT reactions NNS of IN individuals NNS and CC businesses NNS to TO a DT policy NN is VBZ not RB what WP policymakers NNS predicted VVD e NN . SENT g NN . SENT , , a DT decrease NN in IN income NN tax NN rates NNS that WDT does VVZ not RB increase VV consumer NN spending NN . SENT unemployment NN rate NN The DT percentage NN of IN the DT labor NN force NN that WDT is VBZ unemployed JJ and CC actively RB seeking VVG a DT job NN . SENT U NP . SENT S NP . SENT Treasury NP securities NNS Direct JJ obligations NNS of IN the DT U NP . SENT S NP . SENT Government NN , , issued VVN by IN the DT U NP . SENT S NP . SENT Treasury's NP Bureau NP of IN Public NP Debt NP as IN a DT means NN of IN financing VVG the DT Federal NP Government NP . SENT There EX are VBP three CD types NNS of IN securities NNS issued VVD . SENT Treasury NP bills NNS T NN bills NNS , , Treasury NP bonds NNS , , and CC Treasury NP notes NNS . SENT V NN variable JJ rate NN A DT variable JJ rate NN agreement NN , , as RB distinguished VVD from IN a DT fixed JJ rate NN agreement NN , , calls VVZ for IN an DT interest NN rate NN that WDT may MD fluctuate VV over IN the DT life NN of IN the DT loan NN . SENT The DT rate NN is VBZ often RB tied VVN to TO an DT index NN that WDT reflects VVZ changes NNS in IN market NN rates NNS of IN interest NN . SENT A DT fluctuation NN in IN the DT rate NN causes VVZ changes NNS in IN either CC the DT payments NNS or CC the DT length NN of IN the DT loan NN term NN . SENT Limits NNS are VBP often RB placed VVN on IN the DT degree NN to TO which WDT the DT interest NN rate NN or CC the DT payments NNS can MD vary VV . SENT vault NN cash NN Cash NN kept VVN on IN hand NN in IN a DT depository JJ institution's NN vault NN to TO meet VV day NN to TO day NN business NN needs NNS , , such JJ as IN cashing VVG checks NNS for IN customers NNS . SENT can MD be VB counted VVN as IN a DT portion NN of IN the DT institution's JJ required JJ reserves NNS . SENT velocity NN The DT rate NN at IN which WDT money NN balances NNS turn VVP over RP in IN a DT period NN for IN expenditures NNS on IN goods NNS and CC services NNS often RB measured VVN as IN the DT ratio NN of IN GNP NP gross JJ national JJ product NN to TO the DT money NN stock NN . SENT A DT larger JJR velocity NN means VVZ that IN a DT given VVN quantity NN of IN money NN is VBZ associated VVN with IN a DT greater JJR dollar NN volume NN of IN transactions NNS . SENT W NP wire NN transfer NN Electronic JJ transfer NN of IN funds NNS . SENT usually RB involves VVZ large JJ dollar NN payments NNS . SENT wraparound JJ A DT financing NN device NN that WDT permits VVZ an DT existing JJ loan NN to TO be VB refinanced VVN and CC new JJ money NN to TO be VB advanced VVN at IN an DT interest NN rate NN between IN the DT rate NN charged VVN on IN the DT old JJ loan NN and CC the DT current JJ market NN interest NN rate NN . SENT The DT creditor NN combines VVZ or CC wraps VVZ the DT remainder NN of IN the DT old JJ loan NN with IN the DT new JJ loan NN at IN the DT intermediate JJ rate NN . SENT X NN x SYM mark NN signature NN A DT signature NN made VVN by IN a DT person NN unable JJ to TO sign VV his PP$ or CC her PP$ name NN . SENT To TO be VB legally RB valid JJ , , the DT signature NN must MD be VB witnessed VVN by IN another DT person NN . SENT X NP 9 CD A DT financial JJ standards NNS committee NN accredited VVN by IN the DT American NP National NP Standards NPS Institute NP . SENT X NP 9 CD develops VVZ and CC publishes VVZ voluntary JJ financial JJ industry NN payment NN standards NNS for IN banks NNS and CC other JJ depository JJ financial JJ institutions NNS . SENT Y NN yield VV The DT return NN on IN a DT loan NN or CC investment NN , , stated VVN as IN a DT percentage NN of IN price NN . SENT yankee NP bond NN A DT dollar NN denominated VVN bond NN issued VVN in IN the DT United NP States NPS by IN foreign JJ banks NNS and CC corporations NNS . SENT These DT bonds NNS , , the DT U NP . SENT S NP . SENT equivalent NN of IN the DT Eurobond NN , , pay VV semi NN annual JJ interest NN , , unlike IN the DT Eurobonds NNS , , which WDT pay VVP annual JJ interest NN , , and CC are VBP registered VVN with IN the DT Securities NPS and CC Exchange NP Commission NP . SENT Z SYM zero CD coupon NN mortgage NN A DT long JJ term NN commercial JJ mortgage NN that WDT defers VVZ all DT payments NNS of IN principal NN and CC interest NN until IN maturity NN . SENT Home NP What's NP New NP Careers NNS Glossary NN FAQ NP E NP Mail NP Us NP Site NN Map VVP Please RB review VV our PP$ legal JJ notices NNS , , disclaimer NN and CC privacy NN policy NN . SENT