Definition Federal Reserve notes

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Federal Reserve notes

Federal Reserve notes were authorized by the Federal reserve Act of December 23, 1913. Federal Reserve notes were distributed through all twelve Federal Reserve Banks. Each note represented an equivalent value of gold on deposit with the government. Originally Federal Reserve notes were redeemable in gold at the U.S. Treasury or lawful money (coinage) at the Federal Reserve Bank. The ability to redeem Federal Reserves notes for gold ceased in 1934 when the owning of gold bullion was made illegal.

See Federal Reserve System
See Federal Reserve Bank

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