A Currency Drain ________ the Amount of Bank Reserves Available

Multiple Choice

A currency drain ________ the amount of bank reserves available to banks to make loans because ________.

A) reduces;people are holding more money outside of the banks
B) increases;people are holding less money outside of the banks
C) reduces;people are holding less money outside of the banks
D) reduces the monetary base;people are holding more money outside of the banks
E) reduces;people are holding onto the money the banks could have borrowed from the Fed