Complete the sentences with the correct terms.
The Fed $\boxed{}$ controls the money supply through open market operations. For instance, when the Fed buys bonds, this $\boxed{}$ in demand for bonds causes nominal interest rates to $\boxed{}$. When the Fed buys bonds, bank reserves $\boxed{}$, which reduces the need for banks to borrow. This causes the federal funds rate to $\boxed{}$.
