explain briefly about Primary deposite and derivative deposites
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Explanation:
Primary deposit is the initial deposit made by the depositors in the bank.
Secondary deposit or derivative deposit is the deposit of credit created by the bank to the borrower while lending loan.
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Answer:
) It is created when customers deposit their money in the bank by opening new accounts. (i) It arises when customers are granted loans and advances by a bank. (ii) It does not create any kind of credit creation. (iii) Whenever the loan is granted, derivate deposit is created
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