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Article: Federal Reserve System, United States
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- Encyclopedia of Espionage, Intelligence, andSecurity
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CopyrightCOPYRIGHT 2004 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Federal Reserve System, United States
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JUDSON KNIGHT
Created by the passage of the Federal Reserve Act in 1913, the Federal Reserve System serves as the central bank of the United States. Commonly known as the Fed, it conducts monetary policy for the nation by exerting direct influence on the money supply, interest rates, and the purchase of government securities. It is the means by which federally issued currency and coinage reaches financial institutions, which receive these through the 12 Federal Reserve district banks located in various major cities throughout the United States. The Fed also sets the interest rate at which it loans money to member financial ...