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Which of the following statements is NOT correct? The supply of reserves, drawn as a function of the interbank interest rate, A. is a decreasing

Which of the following statements is NOT correct? The supply of reserves, drawn as a function of the interbank interest rate,

A.

is a decreasing function because the interbank rate is an opportunity cost.

B.

has its position affected by the operations of the government with households.

C.

has a kink at the lending facility rate because at that rate banks are indifferent between borrowing in the interbank market and borrowing from the central bank.

D.

is inelastic to the interbank interest rate for levels below the lending facility rate because commercial banks do not use the lending facility.

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