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Do you consider a commercial bank …

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Do you consider a commercial bank 'creator of money' in the economy?

    • Posted by Sanya Singh 5 years, 11 months ago

    CBSE > Class 12 > Economics
    • 2 answers

    Ritesh Patel 5 years, 11 months ago

    Yes, because it borrows and lend money to/ from public and hence affect money supply . It creates money in the economy by charging a slight higher rate of interest on loans than what it offers on deposits.

    1Thank You

    Ujjwal Kesharwani 5 years, 11 months ago

    Yes

    1Thank You

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