GLOSSARY Terms related to the Federal Reserve, banking and economics   A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |   lender of last resort As the nation's central bank, the Federal Reserve has the authority and financial resources to act as "lender of last resort" by extending credit to depository institutions or to other entities in unusual circumstances involving a national or regional emergency, where failure to obtain credit would have a severe adverse impact on the economy.   leverage The ability to use a small amount of money to attract other funds, including loans, grants and equity investments.   liability Money an individual or organization owes; same as debt.   lien A creditor's claim against a property, which may entitle the creditor to seize the property if a debt is not repaid.   liquidity Quality that makes an asset easily convertible into cash with relatively little loss of value in the conversion process. Sometimes used more broadly to encompass credit in hand and promises of credit to meet needs for cash.   liquidity risk In banking, risk that a depository institution will not have sufficient cash or liquid assets to meet borrower and depositor demand.   load The fee a brokerage firm charges an investor for handling transactions.   loan A sum of money lent at interest.