Suppose that the Federal Reserve authorities decide to buy $10 million of U.S. government securities from the American public. The Federal Reserve pays for these bonds by issuing checks which the public deposits in their checking deposit accounts at commercial banks. a) On Balance Sheet A, show how this transaction affects the balance sheets of the Federal Reserve Banks, the commercial banks combined and the public (use - for decrease and for increase in front of the relevant values). Balance Sheet A Federal Reserve Banks Assets Liabilities Government securities $ 10 million Bank Reserves $ millions Combined Commercial Banks Assets Liabilities Reserves $ million Deposits $ millions Public Assets Liabilities Government securities $ million Deposits $ million. b) As a direct result of the Fed's purchase of government securities, the money supply of the country has (increased/decreased) by $ million