Suppose there is an increase in money demand, Holding the money deposits of businesses and households and making loans to the public are the basic functions of Multiple Choice district banks of the Federal Reserve System. commercial banks and thrift institutions. the Open Market Committee and the Board of Governors. the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation.as a result interest rates will Multiple Choice rise and the quantity of money will remain constant. rise and the quantity of money will increase. fall and the quantity of money will decrease. fall and the quantity of money will remain constant