Arrange the following steps of Money Multiplier Process :

A. B comes to the bank for a loan.

B. C deposits all the money into a commercial bank.

C. A deposits money in a commercial bank.

D. D spends the money  which becomes the income of C.

E. Commercial bank keeps CRR and  give loan to B.

Choose the correct answer from the options given below :

C→A→E→D→B

The correct answer is option (3) : C→A→E→D→B

A deposits money in a commercial bank (C): This initiates the process by introducing new money into the banking system.

B comes to the bank for a loan (A).

Commercial bank keeps CRR and  give loan to B (E).

D spends the money which becomes the income of C (D).

C deposits all the money into a commercial bank. (B)