The sequential process by which monetary policy expands economic activity in the economy is: Fed's open market operations (OMO) sale of securities; expansion of bank loans; decrease in interest rates; increase in consumption spending. Fed's OMO purchase of securities; decrease in excess reserves; drop in interest rates; expansion of the monetary base. decrease in reserve requirements; increase in bank loans; a drop in interest rates; increases in consumption spending. decrease in the discount rate; increase in loans and deposits; increase in interest rates; increase in consumption spending. The largest component of assets of the typical Savings & Loan is composed of: commercial loans to businesses. personal loans to consumers. mortgages and mortgage-backed securities. investment securities. none of the above. Generally, money market securities exhibit which of the following characteristics? Large denominational size Maturity greater than one year Low default risk Little price risk I, II and III I, III and IV II, III and IV II and IV I, II, III and IV