Banks affect the money supply

Select one:

a.when they take deposited currency out of circulation and deposit it into their bank vaults.

b.

when they lend their excess reserves to their customers.

c.when a customer from one bank writes a cheque to a customer of another bank who deposits that cheque into his or her chequing account.

d.

All of the above are true.

e.Answers (a) and (b) are correct.