Earlier in 2020, to combat the effects of Covid-19, the Federal Reserve ("the Fed") cut the reserve requirement for banks to 0.

1. What does this mean for banks? What are banks able to do?
2. What does this mean for the money supply?Explain.Will it increase, decrease, or stay the same, and why.
3. In your opinion, why do you think the Fed lowered the rate to 0?Think about the current climate with Covid-19 and what lowering the reserve requirement would mean for the public.