Which of the Below Statements Is FALSE

Multiple Choice

Which of the below statements is FALSE?

A) Interest rates do not influence the change in the money supply.
B) If banks were to keep some excess reserves, they would make fewer new loans and generate fewer deposits at other banks, which would affect the amount of M₁ that the Fed's purchase of securities would generate.
C) One of the important factors in a bank's decisions about excess reserves is the level of market interest rates.
D) The level of market rates shapes decisions about cash holdings.