What Is Fee Income? Financial institutions make money in just two ways: by collecting interest on loans and by charging fees on services. Fee income is the revenue taken in from account-related charges. Charges that generate fee income include non-sufficient funds fees, overdraft charges, late fees, over-the-limit fees, wire transfer fees, monthly service charges, and
What Is a Fence (Options)? A fence is a defensive options strategy involving three different options that an investor deploys to protect an owned holding from a price decline, while also sacrificing potential profits. A fence is similar to options strategies known as risk-reversals and collars that involve two, not three options. Key Takeaways A
What Is the Federal Farm Credit System (FFCS)? The Federal Farm Credit System (FFCS) is a network of government programs and financial institutions created to provide financing for agricultural businesses in the United States. The FFCS was created because agricultural businesses often struggle to secure affordable credit through traditional lenders. Through the FFCS, farmers are
What Is Furniture, Fixtures, and Equipment (FF&E)? Furniture, fixtures, and equipment (abbreviated as FF&E or FFE) refers to movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building. These items, which include desks, chairs, computers, electronic equipment, tables, bookcases, and partitions, typically depreciate substantially over their long-term use
What Is a Federal Housing Administration (FHA) Loan? A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government and issued by a bank or other lender that is approved by the agency. FHA loans require a lower minimum down payment than many conventional loans, and applicants may have lower
What Is an FHA Streamline Refinance? An FHA streamline refinance is an option for homeowners that is administered by the Federal Housing Administration (FHA). It is intended to give consumers an easier way to obtain mortgage refinancing from a participating lender. In order to qualify, a homeowner must currently have an FHA-insured mortgage and cannot
What Is the Federal Home Loan Bank System (FHLB)? The Federal Home Loan Bank System (FHLB) is a consortium of 11 regional banks across the U.S. that provide a reliable stream of cash to other banks and lenders to finance housing, infrastructure, economic development, and other individual and community needs. The Federal Housing Finance Agency
What Is Fiat Money? Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the
What Is a Fibonacci Fan? A Fibonacci fan is a charting technique used in technical analysis that uses the Fibonacci ratio to predict support and resistance levels graphically. The Fibonacci ratio can be used to describe the proportions in things from nature’s smallest building blocks, such as atoms, to the most advanced patterns in the
What Is the Fibonacci Sequence? The Fibonacci sequence was developed by the Italian mathematician, Leonardo Fibonacci, in the 13th century. The sequence of numbers, starting with zero and one, is a steadily increasing series where each number is equal to the sum of the preceding two numbers. Some traders believe that the Fibonacci numbers and
