Please answer the following questions:

1) Identify the goals of monetary policy.

2)Explain the difference between expansionary and contractionary monetary policy?

3) Give examples offourtools of monetary policy to affect the money supply?

4) In the money market, what will happen to the Supply of money when the Federal Reserve bank sells U.S. bonds?

5) In the money market, what will happen to the Supply of money when the Federal Reserve bank decreases the discount rate?