What is process of creation money …
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Meghna Thapar 5 years, 2 months ago
The process of money creation by the commercial banks starts as soon as people deposit money in their respective bank accounts. ... The remaining portion left after maintaining cash reserves of the total deposits is then lend by the commercial bank to the general public in form of credit, loans and advances. The money creation process is the movement of reserves from bank to bank, with each bank using excess reserves to make loans (and checkable deposits), then keeping a fraction of the reserves to back up newly created deposits.
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