By increasing the required reserve? ratio, the Fed forces banks to hold a? _______ quantity of monetary base and the interest rate? _______. A. ?larger; rises B. ?smaller; falls C. ?smaller; rises D. ?larger; falls Part 3 By lowering the interest? rate, the Fed makes it? _______ costly for the banks to borrow monetary base and the interest rate? _______. A. ?less; rises B. ?less; falls C. ?more; rises D. ?more; falls Part 4 When the Fed sells securities in the open? market, the monetary base? _______ and the interest rate? _______. A. ?decreases; rises B. ?increases; rises C. ?increases; falls D. ?decreases; falls The Fed uses its policy tools to _______.By increasing the required reserve ratio, the Fed forces banks to hold a _______ quantity of monetary base and the interest rate _______.By lowering the interest rate, the Fed makes it _______ costly for the banks to borrow monetary base and the interest rate _______.When the Fed sells securities in the open market, the monetary base _______ and the interest rate _______.