The government banking regulation that places an upper limit on the money supply is

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Reserve requirements on bank deposits mandate that banks hold a certain percentage of their deposits in reserve, which restricts their ability to create new money and limits the overall money supply. This is a key tool used by governments to manage the economy and control inflation. Deposit insurance by the FDIC, periodic bank examinations and audits, and limitations on the types of assets a bank may own are also important regulations, but they do not directly affect the money supply.

The Government Banking Regulation That Places an Upper Limit on the Money