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Michael Lambert, Associate Director of the US currency program at the Federal Reserve, explains the structure of the Federal Reserve System, which includes the Board of Governors and twelve district banks. He defines currency as the physical banknotes issued by the Federal Reserve. The Board of Governors determines the amount of currency needed by the public, orders it from the Bureau of Engraving and Printing, and then manages its distribution through the Federal Reserve Banks. As the issuing authority, the Federal Reserve Board has the legal power to produce and circulate these banknotes.