Tools of Monetary Policy Worksheet 1. Supposo that Bank X has $25 milion in deposits. If the Fed sets the required reserve ratio at 15%, how much is the implich tax on deposits at Bank X if their nominal interest rate on loans is 4% ? 2. In the graph below, demonstrate what will hapeen to the federal funds rate if the Fed decresses the discount rate. There mary be more than one possibility. If so, use the second graph to demonstrate the socond possbility. 3. In the graph below, demonstrate what will happen to the federal funds rate if the Fed increases the intorest rate it pays on Reserves. There may be more than one possibility. If so, use the second graph to demonstrato the second possibility