In the tables that follow, you will find consolidated balance sheets for the commercial banking system and the 12 Federal Reserve Banks. Use columns 1 through 3 to indicate how the balance sheets would read after each of transactions a to c is completed. Do not cumulate your answers; that is, analyze each transaction separately, starting in each case from the numbers provided. All accounts are in billions of dollars. a. A decline in the discount rate prompts commercial banks to borrow an additional $3 billion from the Federal Reserve Banks. Show the new balance-sheet numbers in column 1 of each table. b. The Federal Reserve Banks sell $5 billion in securities to members of the public, who pay for the bonds with checks. Show the new balance-sheet figures in column 2 of each table. c. The Federal Reserve Banks buy $4 billion of securities from commercial banks. Show the new balance-sheet figures in column 3 of each table. Instructions: All answers below are to be entered as whole numbers. CONSOLIDATED BALANCE SHEET: ALL COMMERCIAL BANKS Assets: (1) (2) (3) Reserves $33 $? $? $? Securities 60 $? $? $? Loans 60 $? $? $? Liabilities and net worth: Checkable deposits $150 $? $? $? Loans from the Federal Reserve Banks 3 $? $? $? CONSOLIDATED BALANCE SHEET: TWELVE FEDERAL RESERVE BANKS (1) (2) (3) Assets: Securities $60 $? $? $? Loans to commercial banks 3 $? $? $? Liabilities and net worth: Reserves of commercial banks $33 $? $? $? Treasury deposits 3 $? $? $? Federal Reserve Notes 27 $? $? $? d. Now review each of the above three transactions, asking yourself these three questions: (1) What change, if any, took place in the money supply as a direct and immediate result of each transaction? (2) What increase or decrease in the commercial banks