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Face Value: The value of a security as given on the certificate or <br /> instrument. <br /> <br />Federal Deposit Insurance <br />Corporation (FDIC): A federal agency that insures bank deposits, currently up <br /> to $100,000 per entity. <br /> <br />Federal Reserve System: The central bank of the United States created by <br /> Congress and consisting of a seven member Board of <br /> Governors in Washington, D.C., 12 regional banks and <br /> about 5,700 commercial banks that are members of the <br /> system. <br /> <br />Liquidity: A liquid asset is one that can be converted easily and <br /> rapidly into cash without a substantial loss of value. <br /> Having a good amount of liquidity means being able to <br /> pay bills as they become due. <br /> <br />Market Value: The price at which a security is trading at any given <br /> moment and could presumably be purchased or sold. <br /> <br />Maturity: The date upon which the principal or stated value of an <br /> investment becomes due and payable. <br /> <br />Money Market: The market in which short-term debt instruments (bills, <br /> commercial paper, bankers' acceptances, etc.) are issued <br /> and traded. <br /> <br />Money Market Fund: Mutual Fund that invests in commercial paper, banker's <br /> acceptances, repurchase agreements, government <br /> securities, certificates of deposit, and other highly liquid <br /> and safe securities, and pays money market rates of <br /> interest. The City currently has investments in a <br /> government money market fund in which the portfolio <br /> consists of U.S. Treasury and Agency securities. <br /> <br />Portfolio: Collection of securities held by an investor. <br /> <br />Safekeeping: A service to customers rendered by banks for a fee <br /> whereby securities and valuables of all types and <br /> descriptions are held in the bank's vaults for protection. <br /> The City currently uses Bank of America to safekeep <br /> our investment securities purchased from outside <br /> brokers/dealers. Bank of America will pay the <br /> broker/dealer upon receipt of the authorized security. <br /> <br />(fgloss.sy2) 2 <br /> <br /> <br />