Final answer:
Yes, Federally chartered banks must buy shares in their district's Federal Reserve Bank, blending federal oversight with private-sector influence in the Federal Reserve System.
Step-by-step explanation:
Federally chartered banks are indeed required to purchase shares of stock in the Federal Reserve Bank in their district. This requirement helps ensure that the Federal Reserve System has both federally and private-sector appointed leaders, with commercial banks in each district having a say in this process. Each of the 12 regional Federal Reserve banks is responsible for supporting the commercial banks and the economy in its district. The commercial banks in each district elect a Board of Directors for the regional Federal Reserve bank, and this board, in turn, chooses a president for each regional Federal Reserve district.
The Federal Reserve Act of 1913 was a crucial step in providing federal support for the banking system, establishing regulations that brought stability. The structure of the Federal Reserve System is designed to accommodate both central federal oversight and local private-sector participation.