Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) The difference between total reserves and the monetary base is currency held by the nonbank public.
B) The ability to alter the money supply and credit is based on the fact that our banking system does not utilize a fractional reserve system.
C) The ability to predict M1 velocity, in addition to money supply changes, is important in achieving successful monetary policy making.
D) A derivative deposit arising out of a loan from Bank A is transferred by check to Bank B, where reserve requirement are again imposed.