organization created by an act of Congress in 1913. The System is made up of twelve Federal Reserve District Banks, their 24 branches, and many national and state banks throughout the nation. It is headed by a seven-member Board of Governors. The primary function of the Board is to establish and conduct the nation's monetary policy.The System manages the nation's monetary policy by exercising control over the money stock. It controls the money supply primarily in three ways: (1) by raising or lowering the reserve requirement; (2) by setting the DISCOUNT RATE for loans to commercial banks; and (3) through its open market operations by purchasing and selling government securities, mainly three-month bills and notes issued by the U.S. Treasury. The System also serves as the central bank of the United States, a banker's bank that offers banks many of the same services that banks provide their customers. It performs many other functions. It sets margin requirements, regulates member banks, and acts as Fiscal Agent in the issuance of U.S. Treasury and U.S. Government agency securities.