complete the following:

3. Assume that the balance sheet of the Federal Reserve is given by the following: Assets Liabilities Mortgage-backed securities +52 billion Reserve balances +S4 billion 10-year Treasury notes +52 billion U.S. Treasury deposits +52 billion 3-month Treasury bills +52 bi||i0n Suppose that all of the Federal Reserve's holdings of mortgage-backed securities mature. In other words, all of the original issuers of M35 (e.g., Fannie Mae, Freddie Mac) make their final principal payment to the Fed. Show how the Fed's balance sheet would change at maturity. Assets Liabilities Mortgage-backed securities Reserve balances 10-year Treasury notes U.S. Treasury deposits 3-month Treasury bills Going back to the original balance sheet, suppose instead that all of the Federal Reserve's holdings of 10-year Treasury notes mature. Show how the Fed's balance sheet would change at maturity. Assets Liabilities Mortgage-backed securities Reserve balances 10-year Treasury notes US. Treasury deposits 3-month Treasury bills