I need an explanation for this English question to help me study.
The Federal Reserve Bank was created to prevent the confusion and chaos that occurred during the early years of banking in the United States. In 1913, Congress passed the Federal Reserve Act, which created the Federal Reserve System known as the Fed.
The Federal Reserve has a Board of Governors that is made up of 7 members appointed by the President of the United States. The Board oversees the 12 Federal Reserve districts as shown in Figure 6.3 on page 227 of your textbook. Each district is led by a Federal Reserve Bank that is responsible for overseeing the banking and economic conditions for its district. National and state chartered banks become members of the Federal Reserve System and have access to the services provided by the Fed. The Federal Open Market Committee (FOMC) is made up of members of the Board of Governors and the 12 district banks. The FOMC makes monetary policies about interest rates and the money supply.
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