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Money Dictionary

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Electronic Funds Transfer (EFT)   Bank transaction in which funds are transferred from one bank account to another through the Automated Clearing House (ACH). EFT is used for the direct deposit of employees' pay to their bank accounts.
     
Equity Financing   Financing in exchange for stock and/or options in a business without any guaranteed return but with the opportunity to share in the company's profits.
     
Exchange Rate   The value of a country's currency in terms of another country's currency. For example, on March 19, 2008, the exchange rate for one U.S. dollar was 10.70 Mexican pesos.
     
Face Value   The worth of a bond when it reaches its maturity date. The issuer agrees to pay this amount. For example, Harry pays $100 for a $200 bond. When the bond matures, he receives the face value of the bond, which is $200.
     
Fair Credit Reporting Act (FCRA)   A consumer protection law that imposes obligations on (1) credit bureaus (and similar agencies) that maintain consumer credit histories; (2) lenders and other businesses that buy reports from credit bureaus; and (3) parties who furnish consumer information to credit bureaus. Among other provisions, the FCRA limits the sale of credit reports by credit bureaus by requiring the purchaser to have a legitimate business need for the data, allows consumers to learn the information in credit bureau files (including one free credit report annually), and specifies the procedure for challenging errors in credit report data.
     
Fair Debt Collection Practices Act (FDCPA)   Federal law enacted in 1977 to ensure ethical practices in the collection of consumer debts and to provide consumers with a process for disputing and obtaining validation of debt information. FDCPA includes specific rules on how debt collectors can communicate with you at home and at work. These rules are designed to protect consumers from abuse, harassment, and false or misleading tactics.
     
Federal Deposit Insurance Corporation - FDIC   An independent deposit insurance agency created by Congress in 1933 to maintain stability and public confidence in the nation's banking system. The FDIC promotes safety and soundness of insured depository institutions and the U.S. financial system by identifying, monitoring, and addressing risks to the deposit insurance funds; minimizes disruptive effects from the failure of banks and savings associations; and ensures fairness in the sale of financial products and provision of financial services. If your bank is FDIC-insured, it means that if your bank was to go out of business, you would still be able to get the money in your account, up to $250,000.
     
Fixed Rate   A predetermined and unchanging rate. For example, a 3% fixed rate loan means the interest rate will remain at 3%.
     
Foreclosure   A legal action that ends all ownership rights to a home when a homebuyer fails to make the mortgage payments or is in default under the terms of the mortgage.

OFE's Reference List for Money Dictionary