What impact would an increase in the reserves banks want to hold,together with people depositing currency into their demand deposit accounts,have on the money supply?

Question

Quizplus · Accepted Answer

An increase in reserves held by banks could decrease the money supply due to less lending, but depositing currency into demand deposits increases the money supply. The net effect is indeterminate without knowing the relative magnitudes of these changes.

What Impact Would an Increase in the Reserves Banks Want