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a) Describe the process of credit creation by Commercial Banks. What are the limitations of credit creation? [7 Marks] b) Milton Friedman [1956] suggested that

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a) Describe the process of credit creation by Commercial Banks. What are the limitations of credit creation? [7 Marks] b) Milton Friedman [1956] suggested that a number of independent variables that should be included in the demand for money function. Briefly explain any four of these variables clearly showing how each variable affects the demand for money. [8 Marks]

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