Economy, asked by 12348731, 11 months ago

explain using a numerical example how an increase in reserve deposit ratio affects the credit creation power of the banking system​

Answers

Answered by Anonymous
6

Explanation:

Credit creation or money creation refers to the power of the banks to expand or contract demand deposits through the process of more loans, advances and investments. ADVERTISEMENTS: Some writers express the view that a bank could never lend more than the amount deposited by the depositors; this may be partially true

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