Economics · Money and Banking
In a modern banking economy, money creation takes place mainly due to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increase in foreign exchange reserves
- 2Increase in public expenditure
- 3Repeated lending and redepositing by commercial banks✓
- 4Printing of currency by the government
Correct answer
Repeated lending and redepositing by commercial banks
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