Matching Pairs Monetary Policy Tools Matching GameOnline version Test your knowledge of monetary policy tools with this fun matching pairs game! by ALEXIS VLUG 1 The Federal Reserve System 2 Expansionary Policies 3 Open Market Operations 4 Monetary Policy 5 Reserve Requirements 6 Interest Rates 7 Contractionary Policies 8 Unemployment 9 Inflation 10 Discount Rate 11 Business Cycle 12 Recession The amount of money banks must hold in their vaults Actions taken by the FED that control the money supply & influence economic activity Rise in price levels due to excessive monetary growth Central bank of the United States Add to the money supply to stimulate economic activity during a Recession Economic downturn marked by high unemployment and little economic activity Buying and selling government treasuries Measure of fluctuations in GDP over time Layoffs due to cutbacks in business spending during a recession Take away from the money supply to stabilize the economy during Inflation The interest rate at which banks can borrow from the Federal Reserve The cost of borrowing money from the bank.