2. Based on the empirical patterns in Figure 2 below, answer the following questions. Figure 2: Non-borrowed Reserves vs. Borrowed Reserves, 2005-2022 Billions $ 4500- 4000- 3500 3000- 2500 2000 1500 1000 500 0- 2005 -Nonborrowed Reserves -Borrowed Reserves 2006 2007 2008 2009 20101 2011 2012 2013 2014 8 2015 2016 2017 2018 20191 2020 2021 2022 a) Does it make sense to you that for the most part of our sample period in Figure 2, borrowed reserves are very close to non-existence? Explain why. b) What are the driving forces that caused borrowed reserves to rise significantly during 2008-2009? Explain in the context of the macro-economy and the banking system. c) According to Figure 2, the total amount of bank reserves has increased by multiple folds after the financial crisis in 2008. What are the main drivers of this phenomena? Explain in the context of the Federal Reserve System's policy.

2. Based on the empirical patterns in Figure 2 below, answer the following questions. Figure 2: Non-borrowed Reserves vs. Borrowed Reserves, 2005-2022 a) Does it make sense to you that for the most part of our sample period in Figure 2 , borrowed reserves are very close to non-existence? Explain why. b) What are the driving forces that caused borrowed reserves to rise significantly during 2008-2009? Explain in the context of the macro-economy and the banking system. c) According to Figure 2, the total amount of bank reserves has increased by multiple folds after the financial crisis in 2008. What are the main drivers of this phenomena? Explain in the context of the Federal Reserve System's policy. Based on the empirical patterns in Figure 2 below, answer the following questions. Figure 2: Non-borrowed Reserves vs. Borrowed Reserves, 2005-2022 a) Does it make sense to you that for the most part of our sample period in Figure 2 , borrowed reserves are very close to non-existence? Explain why. b) What are the driving forces that caused borrowed reserves to rise significantly during 2008-2009? Explain in the context of the macro-economy and the banking system. c) According to Figure 2, the total amount of bank reserves has increased by multiple folds after the financial crisis in 2008 . What are the main drivers of this phenomena? Explain in the context of the Federal Reserve System's policy. 2. Based on the empirical patterns in Figure 2 below, answer the following questions. Figure 2: Non-borrowed Reserves vs. Borrowed Reserves, 2005-2022 a) Does it make sense to you that for the most part of our sample period in Figure 2 , borrowed reserves are very close to non-existence? Explain why. b) What are the driving forces that caused borrowed reserves to rise significantly during 2008-2009? Explain in the context of the macro-economy and the banking system. c) According to Figure 2, the total amount of bank reserves has increased by multiple folds after the financial crisis in 2008. What are the main drivers of this phenomena? Explain in the context of the Federal Reserve System's policy. Based on the empirical patterns in Figure 2 below, answer the following questions. Figure 2: Non-borrowed Reserves vs. Borrowed Reserves, 2005-2022 a) Does it make sense to you that for the most part of our sample period in Figure 2 , borrowed reserves are very close to non-existence? Explain why. b) What are the driving forces that caused borrowed reserves to rise significantly during 2008-2009? Explain in the context of the macro-economy and the banking system. c) According to Figure 2, the total amount of bank reserves has increased by multiple folds after the financial crisis in 2008 . What are the main drivers of this phenomena? Explain in the context of the Federal Reserve System's policy