Which of the Following Will Occur If the Fed Buys

Multiple Choice

Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?

A) The University National Bank has $10 million less in excess reserves.
B) The University National Bank has $10 million more in securities.
C) The Fed will pay by decreasing the University National Bankʹs deposit account with the Fed by $10 million.
D) The Fed will pay by increasing the University National Bankʹs deposit account with the Fed by $10 million.