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How does changes in bank rate …

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How does changes in bank rate affect money creation by commercial bank?explain

    • Posted by Harsh Tomar 7 years, 11 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Priyanka Bansal 7 years, 11 months ago

    Due to increase in bank rate; commercial banks borrow less money from central bank so commercial banks have less money to give loans to general people due to which there is less credit creation vice verca in case of decrease in. Bank rate ..

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