If the Fed Wishes to Increase the Money Supply, It

If the Fed wishes to increase the money supply, it can:

A) sell a bond to bank, and take the money it receives in exchange out of circulation in the economy.
B) buy bonds from a bank, giving the bank cash in return, which it can then lend out.
C) sell a bond to a bank, and take the money it receives and lend it out to someone else.
D) buy a bond from a bank, requiring the bank to hold the money it receives as excess reserves.