their district Federal Reserve Bank. Also, excess reserves lent by banks to each other. Federal funds market The market in which banks can borrow or lendreserves, allowing banks temporarily short of their required reserves to borrow reserves from banks that have excess reserves. Federal funds rate The interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The Fed funds rate, as it is called, often points to the direction of US interest rates. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate. Federal gift tax A federal tax imposed on assets conveyed as gifts to individuals. Federal Home Loan Banks The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. Federal Home Loan Mortgage Corporation (FHLMC) See: Freddie Mac Federal Housing Administration (FHA) Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures the lenders against loss. Federal Housing Finance Board (FHFB) US government agency chartered in 1989 to assume the responsibilities formerly held by the Federal Home Loan Bank system. Federal Intermediate Credit Bank A bank sponsored by the federal government to provide funds to institutions making loans to farmers. Federal intrafund transactions Intrabudgetary transactions in which payments and receipts both occur within the same federal fund group. Federal Land Bank A bank administered under the US Farm Credit Administration that provides long-termmortgagecredit to farmers for agriculture-related expenditures. Federal margin call A broker's demand upon a customer for cash, or securities needed to satisfy the required Regulation T down payment for a purchase or short sale of securities. Federal Maritime Commission (FMC) A U.S. government agency that regulates and administers the shipping industry. This agency also grants freight forwarder licenses. Federal National Mortgage Association (Fannie Mae) A publicly owned, government-sponsoredcorporationchartered in 1938 to purchase mortgages from lenders and resell them to investors. Known by the nickname Fannie Mae, it packages mortgages backed by the Federal Housing Administration, but also sells some nongovernment-backed mortgages. Federal Open Market Committee (FOMC) The body that is responsible for setting the interest rates and credit policies of the Federal Reserve System. Federal Reserve Act of 1913 Federal legislation that established the Federal Reserve System. Federal Reserve Bank One of the 12 member banks constituting the Federal Reserve System that is responsible for overseeing the commercial and savings banks of its region to ensure their compliance with regulation. Federal Reserve District (Reserve district or district) One of the twelve geographic regions served by a Federal Reserve Bank. Federal Reserve Board (FRB) The seven-member governing body of the Federal Reserve System, which is responsible for setting reserve requirements, and the discount rate, and making other key economic decisions. Federal Reserve float Float is checkbook