Monetary police is a set of actions to control a nations overall money supply and achieve economic growth. The different monetary policies are reserve requirement, open market operations, the discount rate, and interest on reserves. Reserve requirements is the money banks keep overnight. Open market operations are when central banks buy or sell securities. Discount rate is the rate central banks charge their members to borrow money. Interest on reserves is if the federal bank wants to lend more they will lower rates paid on excess reserves. If they want to have banks lend less than they raise the rate. Expansionary impact is to grow the economy by increasing consumer and business spending by increasing the money supply through liquidity. This is good for business decisions because it ht can lower taxes and lower interest rates for business to thrive. The contractionary is a policy that increases the interest rates and increases the money supply . This helps out businesses in no way because it only helps increase the government's budget