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Money creation of commercial bank

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Money creation of commercial bank
  • 1 answers

Abhishek Attri 6 years, 8 months ago

It is the main motive of comm. banks For money creation two assumption are follow 1.All the commercial system is one unit is termed as banks 2.All the transactions are routed through the banks i.e, Payments are made through cheque and receipts are deposited in the banks Formula= Initial deposits × 1/L.R.R
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