Which of the Following Events Would Tend to Cause the Money

Multiple Choice

Which of the following events would tend to cause the money supply to fall?

A) Banks decide to keep more reserves, and people deposit currency in their demand deposit accounts.
B) Banks decide to keep more reserves, and people convert more of their demand deposits to currency.
C) Banks decide to keep fewer reserves, and people deposit currency in their demand deposit accounts.
D) Banks decide to keep fewer reserves, and people convert more of their demand deposits to currency.