The part of the Federal Reserve System (the Fed) that supervises and regulates member banks is O the Board of Governors. O the Federal Open Market Committee. O the Federal Reserve district banks. O the Federal Advisory Committee. Question 70 Open market operations are O the selling of new government securities by banks in order to increase the money supply. O the selling of new government securities in open private markets by banks in order to finance the deficit. O the buying and selling of existing U.S. government securities in open private markets by the Fed in order to change the money supply. O the buying and selling of existing U.S. government securities in open private markets by citizens. Question 71 When the Fed buys government securities, O reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities. O reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities. O reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. O reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. Question 72 The government agency that insures deposits held in banks in the United States is O the Federal Reserve System. O the Federal Bank Insurance Corporation. O the Federal Deposit Insurance Corporation. O the Federal Asset Insurance Corporation. 1.25 pts 1.25 pts 1.25 pts