In the model of the money supply process,the bank's role in influencing the money supply process is represented by

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The bank's role in influencing the money supply process is represented by both the excess reserve ratio and the market interest rate. The excess reserve ratio determines how much of its deposits a bank can lend out, while the market interest rate affects how much money people and businesses borrow and how much banks can lend. Both factors play a crucial role in determining the money supply process. The currency ratio and borrowed reserves also affect the money supply process, but to a lesser extent than the excess reserve ratio and the market interest rate.

In the Model of the Money Supply Process,the Bank's Role