what is mean by money and credit creation
Answers
Answered by
3
Explanation:
Credit creation is a situation in which banks make more loans to consumers and businesses, with the result that the amount of money in circulating (being passed from one person to another) increases. In other words it refers to the unique power of the banks to multiply loans and advance and hence deposits...
Answered by
1
credit creation. Demand deposits are an important constituent of money supply and the expansion of demand deposits means the expansion of money supply. The entire structure of banking is based on credit. Credit basically means getting the purchasing power now and promising to pay at some time in the future. ..
Similar questions