Which of the following will limit the money creation process to an amount less than the potential amount?
A)bank pursuit of profits
B)increase in currency holdings by the public
C)business demand for loans
D)increased use of credit cards

Question

Quizplus · Accepted Answer

An increase in currency holdings by the public reduces the amount of deposits in banks, thereby limiting the banks' ability to create money through the lending process.

Which of the Following Will Limit the Money Creation Process