Page 431 - FY 2026-2027 Adopted Budget Book

LETTERS OF CREDIT: A financial insured credit unions. Administered by the
instrument in which the issuing bank National Credit Union Administration, the
promises to pay a third party on behalf of a Share Insurance Fund has the backing of
second party. the full faith and credit of the United States.
Government.
LIQUIDITY: (a) The ability to convert an
asset easily and rapidly into cash without a PORTFOLIO: Collection of investments held
substantial loss of value. (b) The availability by an
of cash and liquid assets to the City.

LOCAL GOVERNMENT INVESTMENT
POOL
(LGIP): An entity created under the
regulations and codes of the State of Texas
to invest public funds jointly on behalf of
the entities that participate in the pool.

MARKET VALUE: The price at which a
security is trading and could presumably
be purchased or sold.

MATURITY: The date upon which the
principal or stated value of an investment
becomes due and payable.

MONEY MARKET: The market in which
short - term debt instruments (bills,
commercial paper, bankers' acceptances,
etc.) are issued and traded.

OFFER: The price asked by a seller of
securities.

OPEN MARKET OPERATIONS: Purchases
and sales of government and certain other
securities in the open market by the New
York Federal Reserve Bank as directed by
the FOMC in order to influence the volume
of money and credit in the economy.
Purchases inject reserves into the bank
system and stimulate growth of money and
credit; sales have the opposite effect.
Open market operations are the Federal
Reserve's most important and most flexible
monetary policy tool.

NATIONAL CREDIT UNION SHARE
INSURANCE FUND: The federal fund to
insure member's deposits in federally

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