The correct answer is D. All of the above.
Banking habits of the people refer to the willingness of people to deposit their money in banks. If people are not willing to deposit their money in banks, then banks will not have as much money to lend out. This will limit the amount of credit that banks can create.
The cash reserve ratio is the percentage of deposits that banks are required to keep in reserve. This means that banks can only lend out a certain percentage of the money that they have deposited. The higher the cash reserve ratio, the less money that banks can lend out, and the less credit that can be created.
The credit policy of the central bank refers to the measures that the central bank takes to control the amount of credit in the economy. The central bank can use a variety of tools to control credit, such as open market operations, reserve requirements, and the discount rate. If the central bank wants to limit the amount of credit in the economy, it can raise the cash reserve ratio, increase the discount rate, or sell government securities in the open market.
All of these factors can limit the credit creation power of commercial banks.