The FOMC has instructed the FRBNY Trading Desk to purchase $360 million in US Treasury securities. The Federal Reserve has currently set the reserve requirement at 6 percent of transaction deposits. Assume U.S. banks withdraw all excess reserves and give outloans. Assume also that borrowers eventually retum all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? Select one: O a Increase in bank deposits and money supply of $6 billion. b. Decrease in bank deposits and money supply of $6 bilion c Increase in bank deposits and money supply of $3 billion. d. Decrease in bank deposits and money supply of $3 billion e. There is no change in bank deposits and money supply