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member banks and various advisory councils. The goal of monetary policy is to achieve and maintain price-level stability, full employment, and economic growth. The Federal Reserve Banks have two main assets, securities and loans to commercial banks. The securities are bought and sold to commercial banks and the public in order to control the money supply. These transactions influence the amount of commercial bank reserves and therefore the ability of the commercial banks to create money through the lending process. Bank reserves are deposits in accounts with the central bank plus currency that is physically held in bank vaults...
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