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 |   savings account A service depository institutions offer whereby people can deposit their money for future use and earn interest.   savings bank Depository institution historically engaged primarily in accepting consumer savings deposits and in originating and investing in securities and residential mortgage loans; now may offer checking-type deposits and make a wider range of loans.   securities Paper certificates (definitive securities) or electronic records (book-entry securities) evidencing ownership of equity (stocks) or debt obligations (bonds).   Securities and Exchange Commission (SEC) An independent, nonpartisan, quasi-judicial regulatory agency with responsibility for administering the federal securities laws. The purpose of these laws is to protect investors and to ensure that investors have access to disclosure of all material information concerning publicly traded securities. The Commission also regulates firms engaged in the purchase or sale of securities, people who provide investment advice, and investment companies.   security interest The creditor's right to take property or a portion of property offered as security.   seigniorage The profit which results from the difference between the cost of making coins and currency and the exchange value of coin and currency in the market.   self-regulatory organizations (SRO) Nongovernment organizations that have statutory responsibility to regulate their own members such as the New York Stock Exchange (NYSE) and National Association Of Securities Dealers (NASD).   seller's points In reference to a loan, seller's points consist of a lump sum paid by the seller to the buyer's creditor to reduce the cost of the loan to the buyer. This payment is either required by the creditor or volunteered by the seller, usually in a loan to buy real estate. Generally, one point equals one percent of the loan amount. See also points.   service charge A component of some finance charges, such as the fee for triggering an overdraft checking account into use.   short-term interest rates Interest rates on loan contracts--or debt instruments such as Treasury bills, bank certificates of deposit or commercial paper--having maturities of less than one year. Often called money market rates.   simple interest Interest that is paid only on the original amount borrowed for the length of time the borrower has use of the credit. The amount borrowed is referred to as the principal. In the simple interest rate calculation, interest is computed only on that portion of the original principal still owed.   state member bank A bank that is chartered by a state and has elected to join the Federal Reserve System.   stockholder A person who owns stock in a company and is eligible to share in profits and losses; same as shareholder.   street name Securities held in the name of brokers, banks or their nominees, instead of in the customer's name.   surcharge An extra charge imposed on those who purchase with a credit card instead of cash. (Currently, surcharges for credit card purchases are prohibited.)   swap An arrangement between the central banks of two countries for standby credit to facilitate the exchange of each other's currencies.   swap arrangements