The asset of Federal Reserve banks associated with open market operations is Federal Reserve notes. U.S. government securities. loans to member banks. float. Question 6 Which Fed action does not directly increase total reserves in the banking system? Lowering the Discount Rate Lowering reserve requirements Buying U.S. Government securities on the open market None of the above Question 7 Though decentralized in geography, today's Fed is highly centralized in power structure. True False