How does banking affect the money supply? in your own words

The bank will keep some of it on hand as required reserves, but it will loan the excess reserves out. When that loan is made, it increases the money supply. This is how banks “create” money and increase the money supply. When a bank makes loans out of excess reserves, the money supply increases.

Explanation:

answer; i believe its   (india); this is the correct answer; /// good luck

dude you should crop your image so only the question shows. but   can you explain it better