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Factors influencing supply of money

Answer Text:
Factors influencing supply of money:
Government policies:
If there is more money in the economy, the government will put in place measures to reduce the supply such as increasing interest rates.
Policies of commercial banks:
The more the loans offered by commercial banks, the more the amount of money in circulation.
Increase in national income:
increase in national income means that more people will be liquid due to increase in economic activities.
Increase in foreign exchange:
The foreign exchange reserves will increase thus supply increases.