CBSE BOARD XII, asked by varindakaushal79, 10 months ago

one numerical example of credit creation process

Answers

Answered by Ronney123
12

Answer:

The money supply in the economy will increase by the amount (times) of credit multiplier.

(i) All banks are one unit.

(ii) All the transactions are made through banks.

Answered by kanchanb2510
12

Answer:

Commercial banks accept deposits and lend money to the needy borrowers. Through this process they create two types of deposits

, (i) primary deposits and

(ii) derivative or active deposits.

HOPE you understand and like

Similar questions