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About: Federal Reserve Deposits     Goto   Sponge   NotDistinct   Permalink

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Federal Reserve Deposits, also known as Federal Reserve Accounts, are deposits of gold or, later, Treasury Bills placed by United States banks with the Federal Reserve, the central bank. They are interchangeable with Federal Reserve Notes; both are forms of reserve balances and act as backing for the banks to create their own deposits in the form of loans to customers or to each other.