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 cis 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 $1 billion from the Federal Reserve Banks. Show the new balance sheet numbers in column 1 of each table. b. The Federal Reserve Banks sell $3 billion in securities to members of the public, who pay for the bonds with checks. Show the new balance sheet numbers in column 2 of each table. c. The Federal Reserve Banks buy $2 billion of securities from commercial banks. Show the new balance sheet numbers in column 3 of each table. Instructions: Enter your answers as whole numbers in both tables below. Consolidated Balance Sheet: All Commercial Banks 1 2 3 Assets: $33 Reserves Securities Loans Liabilities and net worth:....... Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks $150 T L Consolidated Balance Sheet: 12 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 Federal Reserve Notes