Economy, asked by allandiengdoh29, 3 months ago

Credit creation by commercial bank is determined by: *

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Answered by sameerkumar23

0

Answer:

This is your answer..

In short, money (or credit) creation by commercial banks is determined by (i) amount of initial (primary) deposits and (ii) LRR. The multiple is called credit creation or money multiplier. Symbolically: Total Credit creation = Initial deposits x 1/LPR.

Explanation:

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