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The Federal Reserve System, as an independent agency of the United States government, is charge with overseeing the national banking system. Since 1913 the Federal Reserve System, commonly called the Fed, has served as the central bank for the United States. The system consists of twelve District Reserve Banks and their branch offices, along with several committees and councils. All national commercial banks are required by law to be members of the Fed, and all deposit-taking institutions like credit unions are subject to regulation by the Fed, regarding the amount of deposited funds that must be held in reserve and that by definition, therefore, are not available for loans. The most powerful body is the Seven Member Board of Governors in Washington, appointed by the President and confirmed by the Senate.
The System's primary function is to control monetary policy by influencing the cost and availability of money and credit through the purchase and sale of government securities. If the Federal Reserve provides too little money, interest rates tend to be high, borrowing is expensive, business activity slows down, unemployment goes up, and danger of recession is augmented. If there is too much money, interest rates decline, and borrowing can lead to excess demand, pushing up prices and fueling inflation.
The Fed has several responsibilities in addition to controlling the money supply. In collaboration with the U.S. Department of the Treasury, the Fed puts new coins and paper currency into circulation by issuing them to banks. It also supervises the activities of member banks abroad, and regulates certain aspects of international finance.
It has been said that the Federal Reserve is actually a fourth branch of the United States government because it is composed of national policy makers. However, in practice, the Federal Reserve does not stray from the financial policies established by the executive branch of the government. Although it is true that the Fed does not depend on Congress for budget allocations, and therefore is free from the partisan politics that influence most of the other governmental bodies, it is still responsible for frequent reports to the Congress on the conduct of monetary policies.
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28. From the text above, we may conclude that in U.S as follows, except ….
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