to the relative length of optioncontractmaturities. FASB No. 8 U.S. accounting standard that requires US firms to translate their foreign affiliates' accounts by the temporal method; that is reporting gains and losses from currencyfluctuations in current income. It was in effect between 1975 and 1981 and became the most controversial accounting standard in the US It was replaced by FASB No. 52 in 1981. FASB No. 52 The US accounting standard that replaced FASB No. 8. US companies are required to translate foreign accounts in terms of the current rate and report the changes from currencyfluctuations in a cumulative translation adjustment account in the equity section of the balance sheet. Fast market Excessively rapid trading in a specific security that causes a delay in the electronic updating of its last sale and market conditions, particularly in options. Favorable Balance of Trade The value of a nation's exports in excess of the value of its imports. Favorable trade balance Condition that total exports of a nation exceed total imports, creating a net export. Feasible portfolio A portfolio that an investor can construct, given the assets available. Feasible set of portfolios The collection of all feasible portfolios. Feasible target payout ratios Payout ratios that are consistent with the level of excess funds available to make cash dividend payments. FED Pass A Federal Reserve action adding more reserves to the banking system, increasing the money available for lending, and making credit easier to attain. Federal Advisory Council (FAC) Advisory group made up of one representative (in most cases a banker) from each of the 12 Federal Reserve districts. Established by the Federal REserve Act, the council meets periodically with the Board of Governors to discuss business and financial conditions and make recommendations. Federal agency bond Fixed-income securityissued by a government agency such as FNMA. Federal agency securities Securitiesissued by corporations and agencies created by the US government, such as the Federal Home Loan Bank Board and Ginnie Mae. Federal Agricultural Mortgage Corporation (Farmer Mac) A federal agency chartered in 1988 to provide a secondary market for farm mortgageloans. Federal credit agencies Agencies of the federal government set up to supply credit to various classes or institutions and individuals, e.g., S&Ls, small business firms, students, farmers, and exporters. Federal deficit (surplus) When federal government expenditures are exceeded by federal government revenue. Federal Farm Credit Bank An institution created by the government with the purpose of uniting the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks, and the banks for cooperatives. See: Federal Farm Credit System. Federal Farm Credit System A system chartered in 1971 through the farm credit act providing farmers with credit services through a Federal Land Bank, a Federal Intermediate Credit Bank, and a bank for cooperatives. See: Federal Farm Credit Bank. Federal Deposit Insurance Corporation (FDIC) A federal institution that insures bank deposits. Federal Financing Bank A federal institution that lends to a wide array of federal credit agencies funds it obtains by borrowing from the US Treasury. Federal funds Noninterest-bearing deposits held in reserve for depository institutions at