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If CRR is scrapped as a legal requirement. Do you think the banks can create unlimited amount of money supply

Posted by Kartik Singhal 1 year, 7 months ago

CBSE > Class 12 > Economics

1 answers

Kashish Raghuvanshi 1 year, 7 months ago

Bank create a money by process of money creation. Acc. To your questions "yes the bank create a unlimited money by by leading a loan ".but it had not reserve any amount in the form of crr so it face a big problem

1Thank You

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CBSE > Class 12 > Economics