Ability of a commercial bank to increase the money supply

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Reference no: EM131774599

Question: The ability of a commercial bank to increase the money supply is limited by the

a. willingness of customers to withdraw currency for circulation.

b. demand of the public for liquidity.

c. availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements.

d. eligibility of the bank for currency drafts and its ratio of M2 to M1.

Reference no: EM131774599

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