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Central bank and commercial bank play a big role in maintaining the supply of money in the economy. In the light of this statement explain the factor that affect the money supply in an economy.

Posted by Anukriti Kumari Rajak 3 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Nikhil Shukla 3 years, 11 months ago

0Thank You

Utkarsh Soni 3 years, 11 months ago

Yes, because central bank provide loan to commercial banks to render loan to people which increases or raises the purchasing power in the economy simpli it's used in deflation and for inflation it's just opposite of it. So we can say that central and commercial plays an vital role in money supply.

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CBSE > Class 12 > Economics