Economy, asked by vkapoor102004, 11 months ago

explain briefly the process of credit creation by commercial banks?

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Answered by honey6535
2

Answer:

A process of credit creation by commercial banks:- Commercial banks create money even though they cannot print money. Bank deposits form the basis for credit creation. They accept deposits from the public by opening a deposit account known as the primary deposit. ... This secondary deposit is called the creation of credit.

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