When the Federal Reserve conducts open market operations, it buys and sells foreign currency. increases or decreases the required reserve ratio. buys or sells government bonds. manipulates of the rate at which it loans to member banks. How will the Fed's policy action change the money supply? Use only the actions correspo previous part. The money supply increases The mon The Fed sells foreign currency The Fed increases the reserve ratio The Fed increases the rate at which it lends to member banks The Fed The Fed d The Fed decreases the Answer Bank The Fed buys bonds The Fed sells bond