Suppose the Fed sells $55 billion worth of Treasury bonds to Barclays.

Complete the following table showing the balance sheet of Barclays before and after this sale.

Balance sheet of Barclays

Before	Assets		Liabilities and Shareholder's Equity
	Reserves:	$150 billion	Deposits and otherliabilities:	$900 billion
	Bonds and otherinvestments:	$850 billion	Shareholder's equity:	$100 billion
	Total assets:	$1000 billion	Liabilitiesplus+shareholder's equity:	$1,000 billion
After	Assets		Liabilities and Shareholder's Equity
	Reserves:	$____ billion	Deposits and otherliabilities:	$____ billion
	Bonds and otherinvestments:	$_____ billion	Shareholder's equity:	$_____ billion
	Total assets:	$_____ billion	Liabilitiesplus+shareholder's equity:	$_____ billion

Complete the following table showing the balance sheet of the Fed before and after this sale.

Balance sheet of the Fed

Before	Assets		Liabilities and Shareholder's Equity
	Treasury bonds:	$2,000 billion	Reserves:	$2,000 billion
	Other bonds:	$1000 billion	Currency:	$1,000 billion
	Total assets:	$3,000 billion	Total liabilities:	$3,000 billion
After	Assets		Liabilities and Shareholder's Equity
	Treasury bonds:	$____ billion	Reserves:	$_____ billion
	Other bonds:	$_____ billion	Currency:	$_____ billion
	Total assets:	$_____ billion	Total liabilities:	$_____ billion

If the demand deposits of Barclays' customers equaled $850 billion before the open market sale, and the reserve requirement was 10 percent of these deposits, Barclays > (held/ did not hold) > excess reserves with the Fed.