# Glossary

### *With References to Applicable Sections and Tables*

##### Source: Financial Management Service

**Amounts outstanding and in circulation (USCC)**---Includes all issues
by the Bureau of the Mint purposely intended as a medium of exchange.
Coins sold by the Bureau of the Mint at premium prices are excluded;
however, uncirculated coin sets sold at face value plus handling charge
are included.

**Average discount rate (PDO-1, -2)---**In Treasury bill auctions,
purchasers tender competitive bids on a discount rate basis. The average
discount rate is the weighted, or adjusted, average of all bids accepted
in the auction.

**Budget authority ("Federal Fiscal Operations")---**Congress passes
laws giving budget authority to Government entities, which gives the
agencies the power to spend Federal funds. Congress can stipulate
various criteria for the spending of these funds. For example, Congress
can stipulate that a given agency must spend within a specific year,
number of years, or any time in the future.

The basic forms of budget authority are appropriations, authority to
borrow, contract authority, and authority to obligate and expend
offsetting receipts and collections. The period of time during which
Congress makes funds available may be specified as 1-year,
multiple-year, or no-year. The available amount may be classified as
either definite or indefinite; a specific amount or an unspecified
amount can be made available. Authority also may be classified as
current or permanent. Permanent authority requires no current action by
Congress.

**Budget deficit---**The total, cumulative amount by which budget
outlays (spending) exceed budget receipts (income).

**Cash management bills (PDO-1)---**Marketable Treasury bills of
irregular maturity lengths, sold periodically to fund short-term cash
needs of Treasury. Their sale, having higher minimum and multiple
purchase requirements than those of other issues, is generally
restricted to competitive bidders.

**Competitive tenders ("Treasury Financing Operations")---**A bid to
purchase a stated amount of one issue of Treasury securities at a
specified yield or discount. The bid is accepted if it is within the
range accepted in the auction. (See Noncompetitive tenders.)

**Currency no longer issued (USCC)**---Old and new series gold and
silver certificates, Federal Reserve notes, national bank notes, and
1890 Series Treasury notes.

**Debt outstanding subject to limitation (FD-6)---**The debt incurred by
the Treasury subject to the statutory limit set by Congress. Until World
War I, a specific amount of debt was authorized to each separate
security issue. Beginning with the Second Liberty Loan Act of 1917, the
nature of the limitation was modified until, in 1941, it developed into
an overall limit on the outstanding Federal debt. As of December 2008,
the debt limit was \$11,315,000 million; the limit may change from year
to year.

The debt subject to limitation includes most of Treasury's public debt
except securities issued to the Federal Financing Bank, upon which there
is a limitation of \$15 billion, and certain categories of older debt
(totaling approximately \$595 million as of February 1991).

**Discount---**The interest deducted in advance when purchasing notes or
bonds. (See Accrued discount.)

**Discount rate (PDO-1)---**The difference between par value and the
actual purchase price paid, annualized over a 360-day year. Because this
rate is less than the actual yield (coupon-equivalent rate), the yield
should be used in any comparison with coupon issue securities.

**Dollar coins (USCC)---**Include standard silver and nonsilver coins.

**Domestic series (FD-2)---**Nonmarketable, interest- and
non-interest-bearing securities issued periodically by Treasury to the
Resolution Funding Corporation (RFC) for investment of funds authorized
under section 21B of the Federal Home Loan Bank Act (12 United States
Code 1441b).

**Federal intrafund transactions ("Federal Fiscal
Opera-tions")---**Intrabudgetary transactions in which payments and
receipts both occur within the same Federal fund group (Federal funds or
trust funds).

**Federal Reserve notes (USCC)---**Issues by the U.S. Government to the
public through the Federal Reserve banks and their member banks. They
represent money owed by the Government to the public. Currently, the
item "Federal Reserve notes---amounts outstanding" consists of new
series issues. The Federal Reserve note is the only class of currency
currently issued.

**Foreign ("Foreign Currency Positions," IFS-2, -3)---**Locations other
than those included under the definition of the United States. (See
United States.)

**Foreigner ("Capital Movements," IFS-2)---**All institutions and
individuals living outside the United States, including U.S. citizens
living abroad, and branches, subsidiaries, and other affiliates abroad
of U.S. banks and business concerns; central governments, central banks,
and other official institutions of countries other than the United
States; and international and regional organizations, wherever located.
Also refers to persons in the United States to the extent that they are
known by reporting institutions to be acting for foreigners.

**Foreign official institutions ("Capital Movements")---**Includes
central governments of foreign countries, including all departments and
agencies of national governments; central banks, exchange authorities,
and all fiscal agents of foreign national governments that undertake
activities similar to those of a treasury, central bank, or
stabilization fund; diplomatic and consular establishments of foreign
national governments; and any international or regional organization,
including subordinate and affiliate agencies, created by treaty or
convention between sovereign states.

**Foreign public borrower ("Capital Movements")---**Includes foreign
official institutions, as defined above, the corporations and agencies
of foreign central governments, including development banks and
institutions, and other agencies that are majority-owned by the central
government or its departments; and state provincial and local
governments of foreign countries and their departments and agencies.

**Foreign-targeted issue (PDO-2)---**Foreign-targeted issues were notes
sold between October 1984 and February 1986 to foreign institutions,
foreign branches of U.S. institutions, foreign central banks or monetary
authorities, or to international organizations in which the United
States held membership. Sold as companion issues, they could be
converted to domestic (normal) Treasury notes with the same maturity and
interest rates. Interest was paid annually.

**Fractional coins (USCC)---**Coins minted in denominations of 50, 25,
and 10 cents, and minor coins (5 cents and 1 cent).

**Government account series (FD-2)---**Certain trust fund statutes
require the Secretary of the Treasury to apply monies held by these
funds toward the issuance of nonmarketable special securities. These
securities are sold directly by Treasury to a specific Government
agency, trust fund, or account. Their rate is based on an average of
market yields on outstanding Treasury obligations, and they may be
redeemed at the option of the holder. Roughly 80 percent of these are
issued to five holders: the Federal Old-Age and Survivors Insurance
Trust Fund; the civil service retirement and disability fund; the
Federal Hospital Insurance Trust Fund; the military retirement fund; and
the Unemployment Trust Fund.

**Interfund transactions ("Federal Fiscal Operations")---**Transactions
in which payments are made from one fund group (either Federal funds or
trust funds) to a receipt account in another group.

**International Monetary Fund ("Exchange Stabilization Fund,"
IFS-1)**---(IMF) Established by the United Nations, the IMF promotes
international trade, stability of exchange, and monetary cooperation.
Members are allowed to draw from the fund.

**Intrabudgetary transactions ("Federal Fiscal Operations")---**These
occur when payment and receipt both occur within the budget, or when
payment is made from off-budget Federal entities whose budget authority
and outlays are excluded from the budget totals.

**Noncompetitive tenders ("Treasury Financing Opera-tions")---**This is
a tender or bid to purchase a stated par amount of securities at the
highest yield or discount rate awarded to competitive bidders for a
single-price auction.

**Obligations ("Federal Fiscal Operations")---**An unpaid commitment to
acquire goods or services.

**Off-budget Federal entities ("Federal Fiscal
Operations")---**Federally owned and controlled entities whose
transactions are excluded from the budget totals under provisions of
law. Their receipts, outlays, and surplus or deficit are not included in
budget receipts, outlays, or deficits. Their budget authority is not
included in totals of the budget.

**Outlays ("Federal Fiscal Operations")---**Payments on obligations in
the form of cash, checks, the issuance of bonds or notes, or the
maturing of interest coupons.

**Own foreign offices ("Capital Movements")---**Refers to U.S. reporting
institutions' parent organizations, branches and/or majority-owned
subsidiaries located outside the United States.

**Par value---**The face value of bonds or notes, including interest.

**Quarterly financing ("Treasury Financing Operations")---**Treasury has
historically offered packages of several "coupon" security issues on the
15th of February, May, August, and November, or on the next working day.
These issues currently consist of a 3-year note, a 10-year note, and a
30-year bond. Treasury sometimes offers additional amounts of
outstanding long-term notes or bonds, rather than selling new security
issues. (See Reopening.)

**Receipts ("Federal Fiscal Operations")---**Funds collected from
selling land, capital, or services, as well as collections from the
public (budget receipts), such as taxes, fines, duties, and fees.

**Reopening (PDO-2)---**The offer for sale of additional amounts of
outstanding issues, rather than an entirely new issue. A reopened issue
will always have the same maturity date, CUSIP-number, and interest rate
as the original issue.

**Special drawing rights ("Exchange Stabilization Fund,"
IFS-1)---**International assets created by IMF that serve to increase
international liquidity and provide additional international reserves.
SDRs may be purchased and sold among eligible holders through IMF. (See
IMF.)

SDR allocations are the counterpart to SDRs issued by IMF based on
members' quotas in IMF. Although shown in Exchange Stabilization Fund
(ESF) statements as liabilities, they must be redeemed by ESF only in
the event of liquidation of, or U.S. withdrawal from, the SDR department
of IMF or cancellation of SDRs.

SDR certificates are issued to the Federal Reserve System against SDRs
when SDRs are legalized as money. Proceeds of monetization are deposited
into an ESF account at the Federal Reserve Bank of New York.

**Spot ("Foreign Currency Positions")---**Due for receipt or delivery
within 2 workdays.

**State and local government series (SLGS)** **(FD-2)---**Special
nonmarketable certificates, notes, and bonds offered to State and local
governments as a means to invest proceeds from their own tax-exempt
financing. Interest rates and maturities comply with IRS arbitrage
provisions. SLGS are offered in both time deposit and demand deposit
forms. Time deposit certificates have maturities of up to 1 year. Notes
mature in 1 to 10 years and bonds mature in more than 10 years. Demand
deposit securities are 1-day certificates rolled over with a rate
adjustment daily.

**Statutory debt limit (FD-6)---**By Act of Congress there is a limit,
either temporary or permanent, on the amount of public debt that may be
outstanding. When this limit is reached, Treasury may not sell new debt
issues until Congress increases or extends the limit. For a detailed
listing of changes in the limit since 1941, see the Budget of the United
States Government. (See debt outstanding subject to limitation.)

**STRIPS (PDO-2)---**Separate Trading of Registered Interest and
Principal Securities. Long-term notes and bonds may be divided into
principal and interest-paying components, which may be transferred and
sold in amounts as small as \$1,000. STRIPS are sold at auction at a
minimum par amount, varying for each issue. The amount is an arithmetic
function of the issue's interest rate.

**Treasury bills---**The shortest term Federal security (maturity dates
normally varying from 3 to 12 months), are sold at a discount.

**Trust fund transaction ("Federal Fiscal Operations")---**An
intrabudgetary transaction in which both payments and receipts occur
within the same trust fund group.

**United States---**Includes the 50 States, District of Columbia,
Commonwealth of Puerto Rico, American Samoa, Midway Island, Virgin
Islands, Wake Island, and all other territories and possessions.

**U.S. notes (USCC)---**Legal tender notes of five different issues:
1862 (\$5-\$1,000 notes); 1862 (\$1-\$2 notes); 1863 (\$5-\$1,000
notes); 1863 (\$1-\$10,000 notes); and 1901 (\$10 notes).