Uncertainty May Cause Banks to Hold Larger Excess Reserves

Uncertainty may cause banks to hold larger excess reserves. Other things being constant, this will:

A) ​have no effect on the volume of loans or the money supply.
B) ​tend to reduce both the volume of loans and the money supply.
C) ​tend to increase both the volume of loans and the money supply.
D) ​tend to increase the volume of loans but reduce the money supply.