Ceteris paribus,the money supply becomes smaller when

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When a loan is repaid to the banking system by a bank customer, the money supply decreases because the money that was created through the loan is destroyed. This is known as the money multiplier effect, and it means that the initial deposit leads to a larger increase in the money supply than the amount of the deposit itself. When the loan is repaid, the money that was created through the loan disappears, which decreases the money supply.

Ceteris Paribus,the Money Supply Becomes Smaller When