Economy, asked by neerajsingh00770088, 3 months ago

Explain the process of creadit creation with the help of a numerical example.

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Answered by narayanareddykarri34

1

Answer:

Creation of credit is one of the crucial functions performed by a commercial bank in modern times. ... 10000 crores and the legal reserve requirement proposed by the central bank is 10%. iii Credit Creation = Initial deposits x 1/LRR= 10000/0.1= Rs. 100000 croresStudents may provide a schedule for deriving the same.

Answered by Anonymous

1

Creation of credit is one of the crucial functions performed by a commercial bank in modern times. ... 10000 crores and the legal reserve requirement proposed by the central bank is 10%. iiiCredit Creation = Initial deposits x 1/LRR= 10000/0.1= Rs. 100000 croresStudents may provide a schedule for deriving the same.

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