Question

How can central bank increase availability of credit?

Answer 1

Central banks don't limit the availability of credit, they only affect the interest rate. That is how central banks affect the amount of borrowing - by making interest rates more (or less) attractive. ... Banks create loans by expanding their balance sheet; they don't lend out pre-existing money.

Hope it helps u frd :-)))

Answer 2

central central bank don't limit the availability of credit they only affect the interest rate