Problem
(Reserve Accounts) Explain why a reduction in the required reserve ratio cannot, at least initially, increase total reserves in the banking system. Is the same true of lowering the discount rate? What would happen if the Fed bought U.S. bonds from, or sold them to, the banking system?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.