3. Ogen market operations versus discount loans Consider an expansionary open market operation. Suppose the Federal Reserve buys government securities from commercial banks Suppose that the sellers of government securities redeem these checks drawn on the New York Fed for carency. Then, cateva pabu, bank and thus the monetary base wi currency in circulation Suppose now that the Federal Reserve warts to increase the monetary base by increasing bank reserves only. Which of the folowing actionable the Fed to achieve a gal Lend to commercial banks at the discount window Buy the government securities exclusively from the non-banking public Land to the non-banking public through the term a city Require the sen-banking public to repay discount loans The Federal Reserve's control over the amount of gavement securities by res lending. This is because the Fed has complete control over, thas its central over discount