Question

Explain the role of commercial bank in economic growth.

Answer 1

Answer:

The general role of commercial banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks

Answer 2

Explanation:

The absence of freedom of markets. (ii) State-imposed restriction on movement of goods and capital. (iii) Time-consuming calculations resulting from a difference in currency, weight, and measurement. (iv) The first half of the 19th century had low explosive population growth