Face Value Face Value
The printed value of a fixed income security.

Fair Market Value
Price at which an asset or service passes from a willing seller to a willing buyer. It is assumed that both buyer and seller are rational and have a reasonable knowledge of relevant facts.

FDIC
Federal Deposit Insurance Corporation - A government agency which insures, up to certain limits, the deposits of individual investors at participating banks and savings and loans.

Federal Debt
The total amount the federal government owes because of past deficits.

Federal Deficit
The amount of money the federal government owes because it spent more than it received in revenue for the past year.

Federal Deposit Insurance Corporation
FDIC - Government agency which insures, up to certain limits, the deposits of individual investors at participating banks and savings and loans.

Federal Funds Rate
The interest rate banks charge on overnight loans to banks that need more cash to meet bank reserve requirements. The Federal Reserve sets the interest rate. The Federal Funds Rate is the most sensitive indicator of the direction of interest rates, since it is set daily by the market.

Federal National Mortgage Association (Fannie Mae)
Publicly owned, government-sponsored corporation established in 1938 to purchase both government-backed and conventional mortgages from lenders and securities them, Its objective is to increase the affordability of home mortgage funds for low-, moderate-, and middle-income home buyers.

Federal Open Market Committee (FOMC)
The policy-making arm of the Federal Reserve Board. It sets monetary policy to meet the Fed's objectives of regulating the money supply and credit. The FOMC's chief tool is the purchase and sale of government securities, which increase or decrease the money supply, respectively. It also sets key interest rates, such as the discount rate.

Federal Reserve
The central bank of the U.S. that sets monetary policy. The Federal Reserve oversees money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches, and all national and state banks that are part of the system.

Flower Bonds
Special government bonds that may be used at par for payment of estate taxes

Forward Exchange Rate
A currency exchange contract that traders have agreed upon for a future date. The forward rate is usually for one, two, three or six months and referred to as 30-day forward, 60-day forward, etc.

Fundamental Analysis
Evaluation of an organization based on its financial, competitive earnings and managerial position

Futures
An agreement to purchase or sell a given quantity of a commodity, security, or currency at a specified date in the future.

Futures Option
An option on a futures contract.