Explain the function of credit creation by commercial bank
Answers
Answered by
4
Commercial banks create credit by advancing loans and purchasing securities. They lend money to individuals and businesses out of deposits accepted from the public. However, commercial banks cannot use the entire amount of public deposits for lending purposes. ... The cash reserve requirement of the central bank is 10%.
hope it will help you plz Mark me as brainlist and plz follow me❤
Similar questions