"The Reserve Banks are deemed to be federal instrumentalities for purposes of immunity from state taxation…. The test for determining whether an entity is a federal instrumentality for purposes of protection from state or local action or taxation, however, is very broad: whether the entity performs an important governmental function…. The Reserve Banks, which further the nation's fiscal policy, clearly perform an important governmental function."

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Added on April 10, 2026
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Original Language: English

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https://en.wikiquote.org/wiki/Federal_Reserve_System