Federal Agencies

AAA

DEFINITION of 'Federal Agencies'

Special government organizations set up for a specific purpose such as the management of resources, financial oversight of industries or national security issues. These organizations are typically created by legislative action, but may initially be set up by a presidential order as well. The directors of these agencies are typically selected by Presidential appointment. A number of these organizations issue securities such as stocks and bonds that have been historically popular with investors.

INVESTOPEDIA EXPLAINS 'Federal Agencies'

At last count, there were over 125 different government agencies and commissions, only a small portion of which directly affect investors. Some organizations, such as the Federal Deposit Insurance Corporation (FDIC) and the Government National Mortgage Association (GNMA) have their operations explicitly backed by the U.S. Treasury. Other organizations, such as Fannie Mae, Freddie Mac, and Sallie Mae are only provided with an implied guarantee from the U.S. Treasury.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  3. Ginnie Mae - Government National ...

    A U.S. government corporation within the U.S. Department of Housing ...
  4. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
Related Articles
  1. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  2. Agency Bonds: Limited Risk And Higher ...
    Taxes

    Agency Bonds: Limited Risk And Higher ...

  3. Should You Buy Banks'
    Insurance

    Should You Buy Banks' "Toxic" Assets?

  4. From Booms To Bailouts: The Banking ...
    Home & Auto

    From Booms To Bailouts: The Banking ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center