Money Creation and the Banking System. Indicate which of the following statements are true and which false. Explain. a. The purchase of government securities by the Fed from the public will begin a contraction in commercial bank credit. b. If there is a decrease in market rates of interest, there will be a decrease also in the prices of government securities. c. If money is to remain generally acceptable as a medium of exchange and act as a unit of account and store of value, it must consist of something that is useful and desirable for its own sake. d. If a bank is "loaned up," this means its loans equal its deposits. e. Generally, a decrease in the cash reserves of the commercial banks could force a contraction of money and credit, but an increase in cash reserves cannot force the banks to expand money and credit