Concept:Commercial banks create money through the process of credit creation.
Explanation:Commercial banks do not print currency.
They create money when they give out loans to borrowers.
The loan is deposited back into the banking system.
This allows the bank to lend again, increasing the total money supply.
This process is called credit creation or multiple deposit expansion.
Issuing cheques merely transfers existing money.
Raising the cash ratio reduces the ability to lend.
Answer:D. lending to borrowers.