This exercise utilizes two balance sheets, one for the Federal Reserve and one for Bank of America, a representative member of the banking system. In January 2021, the Fed issued a statement saying it open double quotewill continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month.close double quote Note that Treasury securities are also called Treasury bonds. Note too that agency mortgage-backed securities are labeled as open double quoteother bondsclose double quote in the following balance sheet of the Fed. Assuming that Bank of America is the only bank that is going to undertake these transactions with the Federal Reserve, show how the Fed's as well as Bank of America's balance sheet will change. (In practice, the Fed would buy these bonds from many banks, but for the purpose of this exercise, assume that the Fed buys both the Treasury securities and the agency mortgage-backed securitieslong dashother bondslong dashexclusively from Bank of America.) Given the following balance sheet showing the Fed's initial position, suppose the Federal Reserve increases its holdings of Treasury securities by $100 billion and increases its holdings of agency mortgage-backed securities by $40 billion