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What is money creation explain

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What is money creation explain

Posted by Mahi Pal Singh 6 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Gayatri Nanda 6 years, 6 months ago

MONEY CREATION, THE PROCESS: The process in which the banking system creates checkable deposits by lending excess reserves. ... The money creation process is a natural feature of fractional-reserve banking that occurs as banks act as both safekeepers of deposits and financial intermediaries making loans.

Dolly ?️ 6 years, 6 months ago

It refer to the process of money generation

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