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History of Money

percent copper and 25 percent nickel -- the same alloy used in nickels. People are willing to accept fiat money in exchange for the goods and services they sell only because they are confident it will be honored when they buy goods and services. The Federal Reserve is responsible for maintaining the integrity of U.S. currency by setting monetary policy -- controlling the amount of money in circulation -- to keep prices stable. If prices remain stable, people have confidence that the dollar they use to buy goods and services today will buy a similar amount in the future....

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