What are the limitations of credit creation by banks ?
Answers
Answered by
2
Answer:
The following are the limitations on the power of commercial banks to create credit:
Amount of cash: ...
Proper securities: ...
Banking habits of the people: ...
Minimum legal reserve ratio: ...
Excess reserves: ...
Leakages: ...
Cheque clearances: ...
Behaviour of other banks:
Explanation:
please as your wish can you follow me
please mark me as brainliest
Answered by
0
Answer:
- amount of deposits
- cash reserve ratio
- security for loan
- liquidity preference
- business conditions
- monetary policy
- Leakages
- development of banking system
- behaviour of other banks
- uses of cheque
Similar questions