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Article: Federal Reserve System
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 1999 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
The Federal Reserve System, also known simply as "the Fed," is a U.S. central bank. Its primary role is to influence the amount of money and credit circulating in the economy in order to promote full employment, stable prices, and economic growth. It also regulates and supervises the U.S. banking industry, distributes currency and coins, clears checks, and handles some electronic funds transfers. Unlike traditional banks, the Fed's purpose is not to make a profit but to serve the national interest. Moreover, its customers are not individual citizens but the roughly 4,300 banks that make up its members. The Fed is governed by a sevenmember Board of Governors ...