Leakages of Funds from the Banking System Greatly Reduce the Size

Leakages of funds from the banking system greatly reduce the size of the deposit multiplier. Among the most important leakages are:

A) The public's desire to convert thrift accounts to checkbook money
B) The amount applied to bad debts
C) Federal Reserve requirements increasing the excess reserves a depository must hold on deposit
D) Failure of depository institutions to lend all excess reserves because they choose not to or because they are unable to find qualified borrowers
E) None of the above