is the main source of the money supply in an economy ........

__________ is the main source of the money supply in an economy.

Central Bank

Commercial banks

Both a) and b)

Government

- Central Bank:

- The Central Bank regulates the money supply.

- It issues currency and implements monetary policy.

- Commercial Banks:

- They create money through the lending process.

- When they give loans, they expand the money supply via deposit creation.

- Both a) and b):

- Correct Answer: Both the Central Bank and Commercial Banks are vital.

- Together, they regulate and create money in the economy.

- Government:

- They influence but do not directly create money.

- Fiscal policy affects the money supply indirectly.

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