Explain Why Banks Can Influence the Money Supply If the Required

question 143

Essay

Explain why banks can influence the money supply if the required reserve ratio is less than 100 percent.

---

Definitions:

Protein Cycle

The dynamic process of protein synthesis, utilization, degradation, and recycling within living organisms.

Phosphorus

A chemical element with the symbol P, essential for life, found in DNA, RNA, ATP, and phospholipids.

Sulphur Dioxide

A colorless gas with a sharp, choking smell, produced by volcanic activity or burning fossil fuels, and is a significant air pollutant.

Chlorofluorocarbon

A compound made of chlorine, fluorine, and carbon, used in refrigeration and aerosols, which contributes to ozone layer depletion.