Economy, asked by Niraj3941, 10 months ago

What do you mean by credit creation ?

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Answered by brosunny
4

Answer:

Credit Creation is a situation in which banks make more loans to consumers and businesses, with the result that the amount of money in circulation(being passed from one person to another) increases. In other words it refers to the unique power of the banks to multiply loans and advances, and hence deposits.

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