The Non-Bank Public Chooses Among Various Financial Assets in Deciding

Multiple Choice

The non-bank public chooses among various financial assets in deciding in what form it wants to hold liquidity. It thereby increases or decreases
I. the M1 measure of money supply.
II. the reserves of commercial banks.
III. the reserves that commercial banks are required to hold.

A) none of the above since only the Fed can alter the money supply
B) I, II, and III
C) I and II only
D) I only