1) Monetary Policy is how the FRB controls or           the supply of money

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1) Monetary Policy is how the FRB controls or           the supply of money. The supply of money is determined            by the FRB.

2.    The supply curve for money is a(n)          line.

3.    If there is a(n)           in the money supply, the interest rate decreases and equilibrium quantity of money stock increases.

4.    Expansionary monetary policy is a strategy by the Federal Reserve Bank to increase the supply of money and          economic 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 Policy is a strategy to neither           nor            economic growth.

7.    The tools the FRB uses to conduct monetary policy are         rates, the required         ratio, and open market           .

8.                 is the cost of capital or the price of money.

9.    The discount rate of interest is the percentage the FRB charges member          to borrow money. This rate is            by the FED.

10.  The federal funds rate of interest is the percentage banks may charge           to borrow money. This is a(n)          rate determined by changes in the demand and supply of money.