PLEASE EXPLAIN

3 A simplified balance sheet for the banking system is shown below. All $ are Billions. The system R is 20%. [10] Assets Liabilities and Equity Reserves 40 Demand Deposits 200 Securities 50 Property 30 Loans 140 Assume the Governor of the Central Bank is concerned by inflation in the economy. The Governor decides to (buy/sell) $35 billion in securities, which the chartered banks agree to (sell/buy). Show the transaction values (c.g. +35, -35) in the blank columns, as needed, for the banking system. What is the amount of Excess Reserves in the Banking System now? The chartered banks will (make loans, call-in loans) as a result of this