Here are Finance dictionary terms beginning with F
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Factoring Agency usually a subsidiary of a bank that specializes in buying trade debts at a discount to the face value, this helps provide companies with cash flow more speedily.
Federal Funds Rate an overnight interest rate at which one US bank lends funds to another. The Federal Reserve Open Market Committee sets a target for such interest rates at its FOMC meeting.
Federal Reserve Bank the central bank of the United States, it is made up of 12 Regional Reserve Banks that carry out the monetary policy set by the FOMC.
Floating Rate Note a bond (note) that has a variable coupon or rate of interest. For example, it may be expressed at 1% above dollar LIBOR and will fluctuate according to changes in dollar LIBOR.
Footsie a term used to describe the FTSE100 share index.
Foreign Bond a bond issued in the domestic currency of the country of issue but by a foreign entity. For example, IBM (a US company) issues a sterling bond in London.
Forward Contract a contract to buy/sell a security or commodity at a predetermined price and a predetermined date in the future.
Forward/Forward an agreement to lend/borrow money at a predetermined interest rate in the future for a given amount of time. For example, an agreement to lend/borrow $1million for three months in six months’ time at 4%.
Forward exchange rate is the exchange rate at which two parties agree to buy/sell a currency at some time in the future. There are a variety of forawrd exchange rates, for example, 1 month, 3 months, six months and one year forward rates.
Free Cash Flow the amount of net cash generated by a company after paying ongoing expenses.
FSA the Financial Services Authority, a financial regulator in the UK.
FTSE100 an index of 100 of the largest capitalization company shares listed on the UK market.
Fund Manager the person responsible for investing a unit trust/mutual funds assets and investment strategy.
Futures Contract a standardized agreement to buy/sell a security at a predetermined price at a given date in the future.
Franchise a system whereby a company (the franchisor) allows a rranchisee to set up supply good/service under its brand. This is believed to better incentivize the franchisee to perform.
Free Trade Area an area in which two or more countries agree to have free trade in substantially all products but maintain their own independent tariffs against the rest of the world.
Free market economy is one in which there is a very limited role for government/ minimal regulation. In such an economy it is the forces of supply and demand that determine what goods and servies are produced, how they are produced and who gets the goods and services.
Free rider problem occurs when an economic agent is able to enjoy the benefits of a good/service without paying for it. For example, if someone pays for new road the other people can benefit form it.
Frictional unemployment is the irreducible minimum level of unemployment that occurs in an economy due to labor market imperfections. For example, Some students normally take a while to find a job upon finishing their education.
Full employment describes a situation where all who wish to work at the equilibrium exchange rate have got a job.
Functional distribution of income measure the disyrubtion of the national income according to its source - profits, wages, rent or profits.
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