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If trading brings in more money than flows out of a business, it will have a cash (missing word), which means its bank balance will grow larger

Question

If trading brings in more money than flows out of a business, it will have a cash (missing word), which means its bank balance will grow larger

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Solution

The missing word in the sentence is "surplus". So, the complete sentence is: "If trading brings in more money than flows out of a business, it will have a cash surplus, which means its bank balance will grow larger."

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when we say that in money supply we dont include the cashbalance of commercial banks, here cash balance doesnt mean the LRR right?

The money supply multiplier looks at the effect from the perspective of banking and money supply.

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