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Which of the following factors enhances the ability of commercial banks to create money?

Which of the following factors enhances the ability of commercial banks to create money?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Reduction in the reserve ratio
  • B Leakage of cash out of banking system
  • C Excess of reserves
  • D Insistence on collateral security
Correct Answer: Option A
Explanation:

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