If banks hold any amount of their deposits in reserve, then they do not have the ability to influence the money supply.

Name: If banks hold any amount of their deposits in reserve, then they do not have the ability to influence the money supply.
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Question

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Banks influence the money supply through the process of fractional reserve banking, where they hold only a fraction of their deposits in reserve and lend out the remainder, thereby creating new money.

If Banks Hold Any Amount of Their Deposits in Reserve