A. issuing currency
B. increasing cash ratio
C. issuing cheque
D. lending to borrowers

Correct Answer:

Option D – lending to borrowers

Explanation

Lending to borrowers in form of loan with an interest rate makes the commercial bank to create more money.

SEE ALSO  How does producers expectation of a price fall affect the supply curve of a product? There will be?

Copyright warnings! Do not copy.