FILL IN THE BLANIC Please add the appropriate word or words to complete the sentencea 1 Monetary Policy is how the FRE controls or the supply of money. The supply of money is deteroudned by the FRB. 2 The supply curve for moog dealo) line. 3. If there lea(o) to the money supply, the Loterest rate decreases and equilibrium quantity of money stock to- CreaBeE 1 Expanelonary monetary policy de a strategy by the Federal Reserve Book to docrease the supply of money and econ bouc activity. 5. Contractionary monetary policy is a strategy by the Federal Reserve Bank to decrease the supply of money and economic activity. 6 Neutral Monetary Policyis a strategy to belther nor economic growth 7. Thetoole the FRB uses to conduct monetary policy are rates, the required ratio, and open market . &. iethecost of capital of theprice ofmoney. 9. The discount rate of toterest is the percentage the FRE charges member to borrow money. Thderatele by the FED. 10. The federal foode rate of doterest is the percentage books may charge to borrow money This lea(o) rate de- teroudoed by changes in the demand and supply of money. 11 The federal foode rate lea(o) target By changing the supply of moner, In relation to changes in for money, the FRB can raise lower, or hold constant the federal funds rate. 12 Targeting an docrease to the federal funds rate fea(o) monetary policy. 13. The FED get : the required reserve ratio the percentage of deposits that must be held in cash at all thoLee 14 Decreasing the reserve requirementlea(o) monetary policy. 15. The most powerful tool for monetary polley de open market operations; the purchase or Bale of LLE. govern- ment debt to strum ente the FRB. 16. The FRE boode to the open market is an expansionary monetary policy