If People Refused to Use Banks to Create Checkable Deposits

Multiple Choice

If people refused to use banks to create checkable deposits, the banking system would:

A) not be affected in the money creating process.
B) not have a way to loan out excess reserves.
C) be able to expand the money supply by more than the money multiplier indicates.
D) not be able to create new money.
E) not be able to find new borrowers.