Which of the following observations is true?

Question

Quizplus · Accepted Answer

Inside money refers to bank deposits and other forms of money that can be created by the banking system through lending and other activities. The central bank controls the supply of outside money, which includes physical currency and reserves held by banks at the central bank. Since the bulk of the money supply consists of inside money (bank deposits), it's true that the central bank does not directly control the majority of the money supply.

Which of the Following Observations Is True