In the model of the money supply process, the bank's role in influencing the money supply process is represented by ________.

Question

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The bank's role in influencing the money supply process is represented by both the desired reserve ratio and the market interest rate. The desired reserve ratio determines the amount of reserves a bank would like to hold, and the market interest rate affects the willingness of banks to lend and borrow reserves. Together, these factors influence the money supply process by determining the level of reserves in the banking system and the availability of credit. The currency ratio and borrowed reserves are also important components of the money supply process, but they do not represent the bank's role in influencing the process.

In the Model of the Money Supply Process, the Bank's