Economy, asked by prernabhatia009, 1 day ago

commercial bank : credit creation::central bank:---------​

Answers

Answered by gaikwadshaileshmadha
1

Answer:

Commercial banks create credit by advancing loans and purchasing securities. ... They are required to keep a certain amount as reserve with the central bank for serving the cash requirements of depositors. After keeping the required amount of reserves, commercial banks can lend the remaining portion of public deposits

Explanation:

mark as brain list

Answered by mx564511
0
Commercial banks create credit by
advancing loans and purchasing
securities.
They are required to keep a
certain amount as reserve with the central
bank for serving the cash requirements of
depositors. After keeping the required
amount of reserves, commercial banks
can lend the remaining portion of public deposit
Similar questions