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