Consider an open market purchase by the Fed of $5 billion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities? The bank's securities by $5 billion and its reserves by $5 billion. Compute the impact on M1 assuming that: (1) the required reserve ratio is 5 percent; (2) the bank does not wish to hold excess reserves; and (3) the public does not wish to hold currency. The simple deposit multiplier will be: The value of deposits (and M1) will by $ billion