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Explain the process of money creation …

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Explain the process of money creation and credit creation

Posted by Suminil Singh 3 years, 4 months ago

CBSE > Class 12 > Economics

2 answers

Preeti Dabral 3 years, 4 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.

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Deepanshu Jha 3 years, 5 months ago

Money creation is a process in which commercial bank make credit with the help of initial deposit multiply by one by lrr

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