Q. 10.4 With the onset of the global financial crisis, assets on the Federal Reserve's balance sheet increased dramatically, from approximately $800 billion in 2007 to over $4 trillion in 2016. Many of the assets held are longer term securities acquired through various loan programs instituted as a result of the crisis. In this situation, how could reverse repos (matched sale-purchase transactions) help the Fed reduce its assets held in an orderly fashion while reducing potential inflationary problems