Financial depository institutions, such as commercial banks, can increase and decrease the money supply.

Name: Financial depository institutions, such as commercial banks, can increase and decrease the money supply.
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Financial depository institutions like commercial banks can increase the money supply by lending out more money, which creates new money through the fractional reserve banking system. Conversely, they can decrease the money supply by reducing lending.

Financial Depository Institutions, Such as Commercial Banks, Can Increase and Decrease