1. By selling treasury bills or bonds to the general public, the Federal Reserve Bank

a.	Reduces the money supply

b.	Raises commercial banks' deposits

c.	Increases the money supply

d.	Increases banks' excess reserves

2. A loose money policy tends to _______ economic growth and place _______ pressure on the inflation rate.

a.	Stimulate; downward

b.	Stimulate; upward

c.	Dampen; upward

d.	Dampen; downward