The financial institution that is most important in affecting the money supply is the:

Name: The financial institution that is most important in affecting the money supply is the:
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Question

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Commercial banks play the most crucial role in affecting the money supply because they are involved in the creation of money through the lending process. They accept deposits, from which they can lend out a portion, thereby increasing the money supply through the multiplier effect.

The Financial Institution That Is Most Important in Affecting the Money