If some of the recipients of bank loans keep portion of the loan in the form of cash,the money expansion process would expand.

Name: If some of the recipients of bank loans keep portion of the loan in the form of cash,the money expansion process would expand.
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Question

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When recipients of bank loans keep a portion of the loan in cash, it reduces the amount of money that banks can use for further lending, thus slowing down the money expansion process.

If Some of the Recipients of Bank Loans Keep Portion