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The Federal Reserve System is composed of a central Board of Governors in Washington, D.C. and twelve regional Federal Reserve Banks located in major cities throughout the nation.
The Federal Reserve Board was created by the U.S. Congress through the passing of the Owen-Glass Act, signed by President Woodrow Wilson on December 23, 1913.
The Federal Reserve System was created via the Federal Reserve Act of 1913 which "established a new central bank designed to add both flexibility and strength to the nation's financial system." The legislation provided for a system that included a number of regional Reserve Banks and a seven-member governing board.
The word federal in a general sense refers to the nature of an agreement between or among two or more states, nations, or other groups to merge into a union in which control of common affairs is held by a central authority created by and with the consent of the members.
A Federal District is a subdivision of a federalsystem of government, generally considered a separate entity under the direct control of the federal government.
Federal District also refers to a district reserved by a country for the location of its national government, such as the United States' District of Columbia.