Identify each action by the Fed as expanding the money supply, shrinking it, or neither. Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match. shrinks the money supply expands the money supply neither expands nor shrinks The Fed regulates banks to ensure stability. Press Space to open The Fed lends money to struggling banks. Press Space to open The Fed buys mortgage-backed securities. Press Space to open The Fed sells Treasury bonds to investors.