Question 13-2 What is the basic objective of monetary policy? State the causeeffect chain through which monetary policy is made effective. What are the major strengths of monetary policy? Why is monetary policy easier to undertake than fiscal policy? Question 13-3 What is the impact of each of the following transactions on commercial bank reserves? a. The New York Federal Reserve Bank purchases government securities from private businesses and consumers. h. Commercial banks borrow from Federal Reserve Banks at the discount rate. c. The Fed reduces the reserve ratio