Which of the following statements regarding the banks motives for holding reserves is incorrect ?

A ) If banks on average expect an increase in policy rates they will be inclined to decrease their reserve holdings.

B ) As the opportunity cost of holding reserves increase ,ceteris paribus banks are expected to decreasetheir holdings.

C ) Depending on the volatility of fund inflows and outflows banks adjust the amount of their reserve holdings accordingly.

D ) Under instable financial conditions banks are inclined to hold higher amounts of reserves compared to normal levels.