Through a process called deposit expansion, commercial banks can fund more loans.

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Commercial banks can use the deposits they receive from customers to provide loans to other customers. Through deposit expansion, they can also use a portion of these deposits to create new loans and increase the overall amount of funds available for lending. This process can lead to increased economic activity and growth, as well as potential risks such as inflation and financial instability.

Through a Process Called Deposit Expansion, Commercial Banks Can Fund