QUESTION 31 The buying and selling of U.S. government securities by the Federal Reserve System for the purpose of controlling the supply of money is called tendering subscribing. open-market operations brokering discounting QUESTION 32 The economy has been very strong for several years, and business is booming. However, prices have begun to increase, and there is fear that this increase may continue for an extended period of time. Which of the following actions could the Fed Fake to counteract the increasing prices? Raise the discount rate Lower the reserve requirement. Buy government bonds Increase the overall supply of money, Decrease overall interest rates. QUESTION 33 When the Fed buys government securities, there is less money in the economy available for investment, purchases, or lending. True False QUESTION 34 M1 and M 2 are both measures of O demand deposits gross domestic product reserve requirement levels the supply of money inflation