Question

How Does Banking Affect The Money Supply ?

Answer 1

What do you mean with "banking"?
I think that the effect is the opposite, i.e. the money supply affects banking activities. in particular, when central banks put money into the economy (increase money supply), banks lower interest rates thus boosting private investments. Instead when CBs shrink money supply, then banks lend less money to private/public sector and the interest rates tend to increase. Also here the demand-supply mechanism applies.

Answer 2

Thanks 😊 .

Answer 3

you r welcome :)