The central bank of a country directly influences the components of money supply through 100-percent-reserve-banking or fractional reserve banking. By distinguishing between these two methods, explain how the central bank directly influences the components of money supply.

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter15: The Federal Reserve System And Monetary Policy
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The central bank of a country directly influences the components of money supply through 100-percent-reserve-banking or fractional reserve banking. By distinguishing between these two methods, explain how the central bank directly influences the components of money supply.

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