The Bank Rate Cannot Be Used to Control the Money

Multiple Choice

The bank rate cannot be used to control the money supply with great precision because

A) a change in the bank rate will not affect a bank until two weeks after the change is implemented.
B) its effects on the banks' demand for reserves are uncertain.
C) there is a maximum amount of money that the discount houses can borrow from the Bank of England in any one year.
D) only banks that are members of the Bank of England can borrow from the Bank of England, and most banks are not members of the Bank of England.