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EXHIBIT A <br /> Face Value The value of a security as given on the certificate or <br /> instrument. <br /> Federal Deposit Insurance A federal agency that insures bank deposits, currently up to <br /> Corporation (FDIC) $250,000 per entity. <br /> Federal Reserve System The central bank of the United States created by Congress <br /> and consisting of a seven member Board of Governors in <br /> Washington, D.C., 12 regional banks and about 5,700 <br /> commercial banks that are members of the system. <br /> Liquidity A liquid asset is one that can be converted easily and rapidly <br /> into cash without a substantial loss of value. Having a good <br /> amount of liquidity means being able to pay bills as they <br /> become due. <br /> Market Value The price at which a security is trading at any given moment <br /> and could presumably be purchased or sold. <br /> Maturity The date upon which the principal or stated value of an <br /> investment becomes due and payable. <br /> Money Market The market in which short-term debt instruments (bills, <br /> commercial paper, bankers' acceptances, etc.) are issued and <br /> traded. <br /> Money Market Fund Mutual Fund that invests in commercial paper, banker's <br /> acceptances, repurchase agreements, government securities, <br /> certificates of deposit, and other highly liquid and safe <br /> securities, and pays money market rates of interest. The City <br /> currently has investments in a government money market <br /> fund in which the portfolio consists of U.S. Treasury and <br /> Agency securities. <br /> Portfolio Collection of securities held by an investor. <br /> Safekeeping A service to customers rendered by banks for a fee whereby <br /> securities and valuables of all types and descriptions are held <br /> in the bank's vaults for protection. The City currently uses <br /> Bank of New York Mellon to safekeep our investment <br /> securities purchased from outside brokers /dealers. Bank of <br /> New York Mellon will pay the broker /dealer upon receipt of <br /> the authorized security. <br /> Securities Exchange Agency created by Congress to protect investors in securities <br /> Commission (SEC) transactions by administering securities legislation. <br /> Investment Policy Glossary 2010 4- 6- 10.doc 2 <br />