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The system is conducted by the Federal Reserve System and it influences demand mainly by raising and lowering short-term interest rates. How is the Federal Reserve Structured? The Federal Reserve (the nation's central bank), called the fed for short, was established by congress in 1913 and consists of the Board of Governors in Washington, D.C., and twelve Federal Reserve District Banks. Although the fed is accountable to congress and structured by law, it is totally separate from the departments that manage the country's spending decisions. The governors are appointed by the president for terms of 14 years...
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