The primary factor enabling the Canadian chartered banking system to increase its demand deposits several times over its excess reserves is due to:

Multiple Choice

the banking system must keep reserves equal to $100$ percent of its demand$-$deposit liabilities.

reserves lost by any particular bank will be gained by some other bank.

the MPC of borrowers is greater than zero, but less than $1.$

money demand is always there.

the central banks follow policies that prevent reserves from falling below the level required by law.