Which of the following factors enhances the ability of commercial banks to create money?

Which of the following factors enhances the ability of commercial banks to create money?
  • A.
    Reduction in the reserve ratio
  • B.
    Leakage of cash out of banking system
  • C.
    excess of reserves
  • D.
    Insistence on collateral security
Correct Answer: Option A
Explanation
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