What Happens to the Fed's Balance Sheet When It Buys

Multiple Choice

What happens to the Fed's balance sheet when it buys $10 billion in government securities?

A) The left-hand side of the Fed's balance sheet increases by $10 billion.
B) The left-hand side of the Fed's balance sheet decreases by $10 billion.
C) The right-hand side of the Fed's balance sheet decreases by $10 billion.
D) Both the right-hand and left-hand sides of the Fed's balance sheet decrease by $10 billion.
E) None of these.