Question

How does commercial create credit ? write the process .​

Answer 1

Answer:

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.

Explanation:

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Answer 2

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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%.