6. When the Fed buys securities, it ? the economy by increasing banks' ? reserves. When the Fed sells these securities, people take money out of the bank to buy them, so banks have less money to ? and the economy shrinks. 7. The ? rate is the interest the Fed charges to banks that ? money from it. 8. A high discount rate makes it more ? for banks to borrow, thus ? their excess reserves. 9. If the Fed ? the discount rate, banks are more eager to borrow and then use that extra money to make ? to their customers. 10. The ? rate is the lowest ? rate commercial banks charge their best customers. The federal ? rate is the interest rate banks charge each other for ?-? loans (usually overnight)