In 2003, the Federal Reserve radically changed how the discount window operates. a. What were the changes? (5) b. What is the "stigma of bank borrowing from the Fed and how were the changes related to stigma? (5) c. Find the data on bank borrowing and indicate whether there was a change in average bank behavior in 1998-2000 and 2004-2006. Explain why there was a change if indeed there was or why there wasn't a change if there was not. (Use data from the St. Louis Fed FRED data base, focusing on by all commercial banks, seasonally adjusted.) (10) d. Why did the Fed in 2008 decide to pay interest on bank holdings of reserves with the Fed? (5) e. What was the impact on this policy change on bank reserves in 2012? (5) f. All these questions are background to the following questions: (In each case explain how you reached your conclusions.) 1. How would a banker who pursues a conservative portfolio management policy respond to both the 2003 and 2008 Fed discount mechanism policy changes? (10) 2. How would a banker who pursues the economic approach to asset portfolio management policy respond to both the 2003 and 2008 Fed discount mechanism policy changes? (10) In 2003, the Federal Reserve radically changed how the discount window operates. a. What were the changes? (5) b. What is the "stigma of bank borrowing from the Fed and how were the changes related to stigma? (5) c. Find the data on bank borrowing and indicate whether there was a change in average bank behavior in 1998-2000 and 2004-2006. Explain why there was a change if indeed there was or why there wasn't a change if there was not. (Use data from the St. Louis Fed FRED data base, focusing on by all commercial banks, seasonally adjusted.) (10) d. Why did the Fed in 2008 decide to pay interest on bank holdings of reserves with the Fed? (5) e. What was the impact on this policy change on bank reserves in 2012? (5) f. All these questions are background to the following questions: (In each case explain how you reached your conclusions.) 1. How would a banker who pursues a conservative portfolio management policy respond to both the 2003 and 2008 Fed discount mechanism policy changes? (10) 2. How would a banker who pursues the economic approach to asset portfolio management policy respond to both the 2003 and 2008 Fed discount mechanism policy changes