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 Inflation 2 Unemployment 3 Business Cycle 4 Reserve Requirements 5 Interest Rates 6 Expansionary Policies 7 The Federal Reserve System 8 Monetary Policy 9 Recession 10 Discount Rate 11 Contractionary Policies 12 Open Market Operations Actions taken by the FED that control the money supply & influence economic activity Central bank of the United States The cost of borrowing money from the bank. Rise in price levels due to excessive monetary growth 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 Take away from the money supply to stabilize the economy during Inflation Measure of fluctuations in GDP over time The amount of money banks must hold in their vaults Layoffs due to cutbacks in business spending during a recession The interest rate at which banks can borrow from the Federal Reserve