Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

What term describes a system where financial institutions can increase the money supply by lending out funds deposited with them, thereby facilitating economic activity and growth through credit creation?
a) Fractional reserve banking
b) Monetary expansion mechanism
c) Credit multiplier system
d) Loan multiplication model