Federal Reserve System: Meaning and Definition of

Fed'eral Reserve' Sys"tem

Pronunciation: [key]
  1. a U.S. federal banking system that is under the control of a central board of governorswith a central bankin each of 12 districts and that has wide powers in controlling credit and the flow of money as well as in performing other functions, as regulating and supervising its member banks.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.