Credit Creation | Money and Banking | Banking | Macroeconomics | Unit 2 | CBSE | Class 12

Описание: Banking: Credit Creation | Class 12 Economics | Commercial Banks & Money Creation

Welcome to this detailed explanation of Credit Creation by Commercial Banks, an important part of the Banking chapter in Class 12 Economics (Macroeconomics). This topic is extremely important for CBSE, ISC, and State Board exams, and also forms the base for competitive exams like CUET and Banking exams.

✅ In this video, you will learn:

Meaning of Credit Creation

How commercial banks create credit through the deposit multiplier process

Step-by-step explanation of credit creation with numerical examples

Formula for credit creation = 1 / Cash Reserve Ratio (CRR)

Role of commercial banks in expanding money supply

Limitations of Credit Creation (cash reserve ratio, demand for loans, monetary policy, leakages in credit system, etc.)

Importance of credit creation in the functioning of the economy

📖 This video is based on the NCERT Class 12 Macroeconomics textbook and is extremely useful for:

Class 12 CBSE Economics

ISC Class 12 Economics

State Board Economics

Board Exam preparation (very important short and long questions)

Students preparing for CUET, UPSC basics, Banking, SSC, and other competitive exams

✨ Why this video is important:

Explains credit creation in simple and clear steps

Includes diagrams and numerical problems for easy understanding

Covers both theoretical explanation and practical examples

Helps students secure full marks in exam questions on Credit Creation

👉 By the end of this video, you will have a complete understanding of Credit Creation by Commercial Banks, its process, limitations, and role in the economy.

📌 Don’t forget to Like 👍, Share ↗️, and Subscribe 🔔 for more Class 12 Economics lessons on Banking, Money, National Income, and complete Macroeconomics revision.


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