Apply the distributive property to the expression, and then simplify the result. 
Definitions:
Federal Reserve
The central banking system of the United States, which regulates the U.S. monetary and financial system.
Required Reserve Ratios
The fraction of deposits that regulators require a bank to hold in reserve and not lend out, to ensure bank liquidity.
Financial Markets
Banks and other financial institutions that facilitate the flow of funds from savers to borrowers.
Discount Rate
The interest rate set by central banks that they charge commercial banks for loans and advances, influencing monetary conditions and economic indicators like inflation and investment.
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