The statement that accurately explains the functions of the Federal Reserve district banks and those of the Board of Governors is:
The Board of Governors set the target federal funds rate and oversee the banking industry while the Federal Reserve district banks implement the policies from the Board of Governors.
The Board of Governors plays a key role in policymaking, including setting the target federal funds rate and overseeing the overall banking system, while the district banks are responsible for implementing these policies and conducting operations like open market activities.