Monetary Policy

2. Lowers the discount rate
3. Which leads to an increase in _____ Supply
5. If the FED buys a security, this will lead to a _____ in money supply
7. If someone deposits money into the bank from _______ a government security it will give the bank the ability to issue more loans.
8. If the FED sells a security, this will cause for a ____ number of jobs
9. and can make fewer ______
10. Bankers shy away from the higher ______rates and take out fewer loans.
11. An increase in production happens when the FED _____ a security
13. When banks give the FED money it causes the bank to have less money on ______

1. and lower _____ rates
2. The _____________ system is able to increase or decrease the amount of money in circulation by buying or selling government
4. or by changing the discount rate
6. A slowdown in production happens when the FED _____ a security
11. Member banks take advantage of the lower rate and _______more money.
12. a set of actions to control a nation's overall money supply, and achieve economicgrowth