Place the following steps in the correct order of the money creation process in commercial banks:

  1. Banks accept deposits from customers.
  2. Banks lend out a portion of the deposited money.
  3. Money is created in the economy when banks lend more than they hold in reserves.
  4. The central bank influences the money supply through monetary policy.

1
4 → 1 → 2 → 3
2
1 → 3 → 2 → 4
3
2 → 1 → 4 → 3
4
1 → 2 → 3 → 4

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