Final answer:
The strategy that increases the quantity of loans and lowers interest rates via monetary policy is open market operations to buy bonds, which injects money into the economy and boosts borrowing.
Step-by-step explanation:
A strategy that increases the quantity of loans and lowers interest rates is open market operations to buy bonds. When a central bank executes this action, it is effectively injecting money into the economy, which increases the supply of loanable funds.
This leads to a decrease in interest rates and encourages additional borrowing for investment and consumption.
This form of monetary policy is expansionary, as opposed to contractionary monetary policy that seeks to decrease the money supply and credit in the economy.