An Increase in the Public's Desire to Increase Its Holdings

Multiple Choice

An increase in the public's desire to increase its holdings of currency and coin, other factors held constant, will:

A) Increase the legal reserves of the banking system
B) Decrease the legal reserves of the banking system
C) Increase the nation's money supply since there is an increase in pocket money
D) B and C are both correct
E) None of the above are correct