Economy, asked by vinaben1010, 6 months ago

what is the relation between credit
creation & Supply of money ?
7:​

Answers

Answered by Anonymous
1

Answer:

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.

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