单选题 Which of the following statements about the relationship between interest rates and the demand for and supply of money is most accurate? Interest rates affect:

A. the supply of money only.
B. both the demand for and supply of money.
C. the demand for money only.

【正确答案】 C

【答案解析】Interest rates only affect the demand for money. With higher interest rates, the opportunity cost of holding money increases, and people hold less money and more interest-earning assets. Monetary authorities determine the supply of money. Therefore, the supply of money is independent of the interest rate.