Economy, asked by mgranandhi2361, 1 year ago

Is there any limit to deposit creation by banks? Explain

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Answered by khusi45
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Answered by vchilongo
1

Yes there is definitely a limit for deposit creation in any given bank, this is because the bank systems must control the amount of money in the supply of the economy, If much deposits are done the supply of money in the economy will reduce therefore leading to scarcity of income in the economy which has got the great negative effect to our economy, inflation may arise

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