【正确答案】The mechanism of money supply involves such things as where money comes from, through what channel money comes into circulation or how money is supplied in .an economy, thus forms the movement of money. 　　Money in modern economy is created by the banking system. As we mentioned in Section 1 , the process of money creation involves the central bank, commercial banks, depositors and borrowers, but among them the most important are the central bank and commercial banks. The former has the privilege to provide monetary base and regulate money supply while the latter creates money.