The Fed Buys $1 Million in Bonds from a Bond

The Fed buys $1 million in bonds from a bond dealer. The bond dealer's bank experiences

A) an increase in assets of $1 million as its reserves increase and a decrease in liabilities as its transactions deposits fall.
B) no change in assets or liabilities. Assets both increased and decreased by the amount of the check.
C) a decrease in assets of $1 million as the checking account of the bond dealer increased, and a decrease in liabilities as the bank's deposits with the Fed increased by $1 million.
D) an increase in assets of $1 million as its reserves increase and an increase in liabilities of $1 million as the deposits in the bond dealer's transactions account increases by $1 million.