Federal Reserve System: The principal monetary authority (central bank) of the United States, which issues currency and regulates the supply of credit in the economy. It is made up of a seven-member Board of Governors in Washington, D.C., 12 regional Federal Reserve Banks, and their 25 branches.

Fiscal policy: The federal government's decisions about the amount of money it spends and collects in taxes to achieve full employment and non-inflationary economy.

Fixed exchange rate system: A system in which exchange rates between currencies are set at a predetermined level and do not move in response to changes in supply and demand.

Floating exchange rate system: A flexible system in which the exchange rate is determined by market forces of supply and demand, without intervention.